Replies to post #2908 on Cleveland Cliffs Inc (CLF)

[DewDiligence]

Re: HBI pricing

CLF expects the price of its HBI pellets to be based on a formula that includes the prices of Busheling steel scrap and pig iron. Either (or both) of these two inputs to EAFs can be swapped out in favor of HBI.

Since commercial production of CLF’s HBI is expected to begin in the summer of 2020, there is still time to fine-tune the pricing formula.

(Source: Jefferies webcast 8/7/18.)