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Cleveland-Cliffs (CLF) is rallying sharply today despite delivering a mixed Q3 report. So why is the stock up? 

• Sentiment was cautious coming into the report, with the stock a bit weak over the past month.
• CLF delivered an optimistic outlook that investors are prioritizing over the Q3 miss.
• The company described a valuable Memorandum of Understanding (MoU) with a major global steel producer.
• CLF disclosed early-stage rare-earth mineral potential at two of its U.S. sites.

CLF has heavy exposure to the auto industry—about 30% of sales and 30-35% of shipments are to automotive clients. It is the leading North American supplier of automotive-grade flat-rolled steel, operating nine galvanizing plants, five of which specialize in exposed auto parts.

With that context, CLF's statement that Q3 marked a clear sign of demand recovery for U.S.-made automotive-grade steel was key. Management credited this rebound to the new trade environment implemented by the Trump Administration, which favors domestically produced steel. CLF has recently secured growing, multi-year supply deals with all major automotive OEMs.

One headwind—CLF is currently fulfilling a slab supply contract with ArcelorMittal (MT), which slightly muted Q3 results. However, that contract ends in early December. Afterward, CLF will retain those slabs for its own high-value auto clients, supporting a richer sales mix and stronger pricing heading into 2026.

Further strengthening the bull case, CLF entered into an MoU with a major global steel producer that intends to tap into CLF's US-based, trade-compliant footprint. The company expects this partnership to be "highly accretive" and plans to provide more details soon.

CLF also revealed that geological surveys at two of its sites (in Michigan and Minnesota) show promising signs of rare-earth mineralization. If confirmed, this could position CLF as a strategic player in critical material independence—much like it has become in steel.

Briefing.com Analyst Insight:

CLF's Q3 report was nothing to cheer about on the surface, but the market is clearly focused on the road ahead—and for good reason. Management laid out a compelling multi-year narrative rooted in automotive demand recovery, trade protection tailwinds, and new strategic partnerships. The MoU with a major global steel player and rare-earth exposure are both intriguing upside levers. While execution risk remains—especially with commodity price volatility and auto sector sensitivity—CLF is positioning itself at the intersection of reshoring, EV growth, and resource independence. This report adds fuel to the idea that CLF is more than just a cyclical steelmaker.