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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
Amid shifting dynamics in the commodities market, Morgan Stanley has downgraded Cleveland-Cliffs (CLF) from Overweight to Equal-weight. Analysts believe the supply-driven rally in U.S. steel prices is nearing its peak after a significant period of growth. According to reports, the bank expects prices to moderate in 2027 and 2028 as domestic production and imports rise, easing previous market tightness.
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Sign InThe downgrade follows a robust 50% rally in CLF stock, which Morgan Stanley suggests has now priced in much of the upside potential. This move reflects broader sector trends where peers like Nucor and Steel Dynamics are also navigating expectations of increased global supply. Per market data, the anticipated rise in domestic capacity is expected to balance the supply-demand equation, potentially capping further price surges in the medium term.
In the markets, CLF stood at $12.28 (at close June 21, 2026). Traders are monitoring industrial catalysts, noting that U.S. Industrial Production grew by only 0.1% on June 15, 2026, missing the 0.3% forecast. Upcoming catalysts to watch include quarterly earnings reports and demand signals from the automotive and construction sectors to gauge the sustainability of current steel pricing levels.