Cutting Spending to the Bone Might Not Be Enough for Cliffs Natural Resources
On news of further cuts to capital spending, it appears that Cliffs Natural Resources (NYSE: CLF ) is finally giving up on a turnaround in the primary markets of iron ore and metallurgical coal. Such a capitulation from a market leader is an important step toward reaching a bottom for any commodity.
Cliffs Natural Resources has had nothing but negative news lately, with a weak first quarter report and plunging iron ore prices falling below $100 a metric ton. Unfortunately, leading iron ore miner Vale (NYSE: VALE ) recently reported some concerning trends that capital spending cuts might not overcome in the short term.
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