Cleveland-Cliffs Inc (CLF) 2025 Q2 法說會逐字稿

Good morning, ladies and gentlemen. My name is Rob, and I'm your conference facilitator today. I would like to welcome everyone to the Cleveland-Cliffs second-quarter 2025 earnings conference call. (Operator Instructions)

女士們、先生們，早安。我叫羅布，是今天會議的主持人。歡迎大家參加克里夫蘭克利夫斯 2025 年第二季財報電話會議。（操作員指示）

The company reminds you that certain comments made on today's call will include predictive statements that are intended to be made as forward-looking with the Safe Harbor protections of the Private Securities Litigation Reform Act of 1995. Although the company believes that its forward-looking statements are based on reasonable assumptions, such statements are subject to risks and uncertainties that could also cause actual results to differ materially.

該公司提醒您，今天電話會議上發表的某些評論將包括預測性陳述，這些陳述旨在根據 1995 年《私人證券訴訟改革法案》的安全港保護做出前瞻性陳述。儘管公司認為其前瞻性陳述是基於合理的假設，但此類陳述仍受風險和不確定性的影響，也可能導致實際結果有重大差異。

Important factors that could cause results to differ materially are set forth in reports on Forms 10-K and 10-Q and news releases filed with the SEC, which are available on the company's website. Today's conference call is also available and being broadcast at clevelandcliffs.com. At the conclusion of the call, it will be archived on the website and available for replay. The company will also discuss results excluding certain special items. Reconciliation for Regulation G purposes can be found in the earnings release, which was published this morning.

可能導致結果出現重大差異的重要因素已在提交給美國證券交易委員會 (SEC) 的 10-K 和 10-Q 表格報告以及新聞稿中列出，這些報告可在公司網站上查閱。今天的電話會議也可在 clevelandcliffs.com 上觀看和直播。會議結束後，會議內容將存檔並上傳至網站，可供重播。該公司還將討論不包括某些特殊項目的結果。可以在今天早上發布的收益報告中找到有關 G 規則目的的對帳資訊。

At this time, I would like to introduce Lourenco Goncalves, Chairman, President and Chief Executive Officer.

現在，我想介紹董事長、總裁兼執行長 Lourenco Goncalves。

Thank you, Rob, and good morning, everyone. Our adjusted EBITDA in Q2 showed an improvement of $271 million from the prior quarter. We achieved higher shipment volume targets, and as a result, we improved our operational efficiency and lowered our production costs. Our recently announced footprint optimization initiatives are underway, as planned, and you will see their impact in the second half of this year. We are laser-focused on cost-cutting [and steel] sales, and that's the way we will continue to execute going forward.

謝謝你，羅布，大家早安。我們第二季的調整後 EBITDA 較上一季增加了 2.71 億美元。我們實現了更高的出貨量目標，從而提高了營運效率並降低了生產成本。我們最近宣布的足跡優化計劃正在按計劃進行，您將在今年下半年看到它們的影響。我們專注於削減成本（和鋼材）銷售，這也是我們今後將繼續執行的方式。

Section 232 is steel tariffs implemented on March 12 at a level of 25% and increased to 50% on June 4, have played a significant role in supporting the domestic steel industry. Foreigners competing unfairly will do whatever they can to get into our great American domestic market. They pay their workers a lot less than we pay our American workers. They receive direct subsidies from their governments, and they do not have to comply with the stringent environmental standards and loss we have in place in the United States.

美國232條款鋼鐵關稅於3月12日實施，稅率為25%，並於6月4日提高至50%，對國內鋼鐵業起到了很大的支撐作用。進行不公平競爭的外國人會盡一切辦法進入我們偉大的美國國內市場。他們支付給工人的工資比我們支付給美國工人的工資低得多。他們從政府獲得直接補貼，而且不必遵守美國實施的嚴格的環境標準和損失。

So far, there is no indication that the Section 232 tariffs will be used as a bargaining chip by the Trump administration as leverage in trade deals with other countries. We appreciate that and fully expect that the administration will keep in place and enforce this Section 232 tariffs.

到目前為止，還沒有跡象表明232條款關稅將被川普政府用作與其他國家達成貿易協議的籌碼。我們對此表示讚賞，並完全預期政府能夠維持並執行第 232 條關稅。

If the United States really wants to continue to have a strong domestic steel industry, proper enforcement of the Section 232 tariffs is absolutely necessary with no exceptions or exemptions allowed. The import data that has been published thus far makes it very clear that the 232 tariffs are having a positive impact, not just on steel, but also on the automotive sector.

如果美國真的希望繼續擁有強大的國內鋼鐵產業，那麼第 232 條關稅的適當執行是絕對必要的，不允許有任何例外或豁免。迄今為止公佈的進口數據清楚地表明，232關稅不僅對鋼鐵業，而且對汽車業都產生了積極影響。

Both flat-rolled steel imports and light vehicle imports hit multiyear lows in April. The Trump administration has prioritized two sectors is steel and automotive that are critical to the strengths of our economy, to the resilience of our supply chains and to United States National Security. Cliffs sits right there at the intersection of both sectors, in steel and automotive.

4月份，扁鋼進口量和輕型汽車進口量均創下多年來的最低水準。川普政府優先考慮的兩個產業是鋼鐵和汽車，這兩個產業對於我們的經濟實力、供應鏈的彈性以及美國國家安全至關重要。Cliffs 正處於鋼鐵和汽車兩個行業的交匯處。

The place where imported steel remains a huge problem is Canada. We understand why the US has a 50% tariff on imported steel from Canada, and that's fine. We are keeping all Stelco steel in Canada, and we are doing that by design since we acquired Stelco in November of last year and not now as a result of the tariffs implemented in 2025.

進口鋼鐵仍然是一個巨大問題的地方是加拿大。我們理解為什麼美國對從加拿大進口的鋼鐵徵收 50% 的關稅，這很好。我們將 Stelco 的所有鋼材保留在加拿大，這是我們自去年 11 月收購 Stelco 以來有意為之，而不是因為 2025 年實施的關稅。

It's well known that the United States is a net importer of steel. What's not as well known is that Canada is also a net importer of steel. So just like the US used to be prior to President Trump, Canada is still being taken advantage of by all foreign producers, friends and [foes], all dumping steel into the Canadian market, friends and foes.

眾所周知，美國是鋼鐵淨進口國。較不為人所知的是，加拿大也是鋼鐵淨進口國。因此，就像川普總統上任之前的美國一樣，加拿大仍然被所有外國生產商（朋友和敵人）所利用，所有外國生產商都向加拿大市場傾銷鋼鐵，朋友和敵人都是如此。

The Canadian government latest attempt to stop unfair trade is insufficient. It only covers 70% steel imports into Canada because of the insistence on allowing free trade agreement countries, the so-called FDA friends to continue to use Canada as their outlet for overproduction. Our message is very clear and easy to understand. If Prime Minister Carney and his cabinet really want to have a steel industry in Canada, they should put in place significant trade protections. Then they will have a strong domestic steel industry in Canada able to support a vibrant domestic Canadian market.

加拿大政府最近為阻止不公平貿易所做的努力還不夠。由於堅持允許自由貿易協定國家，即所謂的 FDA 朋友繼續利用加拿大作為其過剩生產的出口，它僅涵蓋加拿大 70% 的鋼鐵進口。我們的訊息非常清晰且易於理解。如果卡尼總理和他的內閣真的希望在加拿大發展鋼鐵產業，他們就應該實施嚴格的貿易保護措施。這樣，加拿大國內的鋼鐵業將更加強大，能夠支撐充滿活力的加拿大國內市場。

We are doing just that here in the United States, and it's working. The strategic protection leads to reinvestment, full employment and long-term viability. Our Canadian employees need more action, real action from Prime Minister Carney. Now on the top of automotive. The most relevant issue to be attacked and resolved is enhancing the consumers' ability to finance the purchase of a vehicle. Despite no signs of tariffs reigniting inflation, the Federal Reserve continues to keep interest rates unnecessarily high.

我們在美國正在這樣做，而且正在發揮作用。戰略保護將帶來再投資、充分就業和長期生存能力。我們的加拿大員工需要卡尼首相採取更多行動，真正的行動。現處於汽車產業的頂端。目前最需要攻克和解決的問題是提高消費者購買汽車的融資能力。儘管沒有跡象顯示關稅會重新引發通膨，但聯準會仍繼續維持不必要的高利率。

After making home buying unattractive with very expensive mortgages, the Fed's inaction on cutting interest rates is now an impediment to car buyers. Once Chairman, Jerome Powell is gone, and that's not a matter of when, not if, and as soon as interest rates come down by 50 basis points or 75 basis points, the automotive sector will take off again. Demand is there, but this Fed Chairman will not act. So we need a new Fed Chairman appointed as soon as possible.

聯準會在透過非常昂貴的抵押貸款使購屋變得缺乏吸引力之後，又不採取行動降低利率，這又對購車者構成了阻礙。一旦主席鮑威爾離任，這不是何時、是否發生的問題，只要利率下降 50 個基點或 75 個基點，汽車產業就會再次起飛。需求是存在的，但這位聯準會主席不會採取行動。因此我們需要盡快任命一位新的聯準會主席。

At Cleveland-Cliffs, even with the growth we have been seeing in our tonnage delivered to the sector, we still have underutilized automotive steel capacity. With the OEMs continuing to bring back production to the United States and with consumer-friendly interest rates, the automotive sector will thrive. Cliffs is ready for that. We can ramp up quickly and our capabilities, quality and customer service are well known by all OEMs. Cliffs is in a unique position to support the upcoming resurgency in American vehicle production. Right now, not in three or five years.

在克利夫蘭克利夫斯，即使我們向該行業交付的鋼材噸位有所增長，但我們的汽車鋼材產能仍然未充分利用。隨著原始設備製造商繼續將生產轉移回美國，以及對消費者有利的利率，汽車產業將蓬勃發展。Cliffs 已為此做好準備。我們可以快速提升產能，我們的能力、品質和客戶服務受到所有 OEM 的認可。Cliffs 在支持美國汽車生產即將到來的復甦方面具有獨特的優勢。現在就行，三年或五年後還不行。

Other relevant news in trade enforcement is the very important 50% tariff that will go into place on Brazilian pig iron, starting August 1. Cleveland-Cliffs does not rely on imported pig iron at all. We have our own hot briquetted iron facility in Toledo, Ohio, but several of our EAF competitors do rely on important pig iron. We are vertically integrated, and we use American iron ore and American coal and American natural gas as feedstock, all produced right here in the United States of America, employing American workers.

貿易執法方面的其他相關新聞是，非常重要的一項舉措是，自 8 月 1 日起，將對巴西生鐵徵收 50% 的關稅。克利夫蘭克利夫斯根本不依賴進口生鐵。我們在俄亥俄州托萊多擁有自己的熱壓鐵塊工廠，但我們的幾家 EAF 競爭對手確實依賴重要的生鐵。我們是垂直整合的，我們使用美國鐵礦石、美國煤炭和美國天然氣作為原料，全部在美國生產，僱用美國工人。

There is no justification to exempt imported pig iron from tariffs as it is just to create an artificial cost advantage to benefit some players to the detriment of others. That would be equivalent to allowing imported steel into our markets just because dumped steel is cheaper than domestic producer steel or allowing for imported cars made in China to be dumped into the United States just because Chinese cars are cheaper.

免除進口生鐵關稅是沒有道理的，因為這只是為了創造人為的成本優勢，讓一些參與者受益，而損害其他參與者的利益。這相當於僅僅因為傾銷的鋼材比國內生產的鋼材便宜就允許進口鋼材進入我們的市場，或者僅僅因為中國汽車更便宜就允許進口中國製造的汽車傾銷到美國。

Cliff's vertical integrated business model differentiates us from the rest of the industry by being completely independent from important feedstock. The EAF mini mills rightfully so do not support any exemptions for imported steel. And as a matter of coherence, they should not ask for exempting from tariffs imported pig iron from Brazil or from any other country.

Cliff 的垂直整合業務模式使我們完全獨立於重要原料，從而有別於其他公司。電弧爐小型鋼廠理所當然地不支持對進口鋼材實施任何豁免。為了保持一致性，他們不應該要求免除從巴西或任何其他國家進口生鐵的關稅。

In Q2, we also had some exciting news for our stainless-steel business. Our smaller but consistently profitable stainless business is one of our best-kept secrets. During the quarter, we completely and commissioned a $150 million investment in our Bright Annealing Line at our Coshocton Works plant in Ohio.

在第二季度，我們的不銹鋼業務也有一些令人興奮的消息。我們的不銹鋼業務規模雖小，但持續獲利，這是我們最保守的秘密之一。本季度，我們已完成並委託了位於俄亥俄州科肖克頓工廠的光亮退火生產線 1.5 億美元的投資。

Bright Annealed stainless is a premium stainless-steel product for high-end automotive and critical appliances application. If you think about the bright trim surrounding a car window or the inner drum of a washer and dryer, that's what we make there. With this investment, which should generate a quick return on invested capital, we are dramatically improving the quality and productivity of this critical product that our customers rely upon Cleveland-Cliffs for.

光亮退火不銹鋼是適用於高端汽車和關鍵電器的優質不銹鋼產品。如果您想想汽車車窗周圍的明亮裝飾或洗衣機和烘乾機的內筒，那就是我們在那裡製造的。這項投資應該能帶來快速的投資回報，我們將大幅提高客戶依賴克利夫蘭-克利夫斯生產的這項關鍵產品的品質和生產力。

Finally, let me briefly touch on the shifting competitive landscape in the domestic steel market. The United States remains the most desirable market for steel. Nippon Steel's entry into our market and their astonishing high investment promises highlight the strength and appeal of the opportunities here. Nippon's nearly $29 billion total investment proves something we have said all along, fully integrated mining, [billetizing], blast furnace, BOF production is necessary, particularly in a country like the United States that already has more than 70% EAF-based steel making.

最後，我簡單談談國內鋼鐵市場競爭格局的變化。美國仍然是最理想的鋼鐵市場。新日鐵進入我們的市場並做出驚人的高額投資承諾，凸顯了這裡的機會的實力和吸引力。新日鐵的近 290 億美元總投資證明了我們一直以來所說的一點，即全面整合採礦、[製坯]、高爐、轉爐生產是必要的，特別是在美國這樣一個已經有超過 70% 的鋼鐵生產採用電弧爐的國家。

If that was not the case, Nippon Steel would have just built a big number of new EAF mini mills in the United States for a much lesser investment and would not have purchased a primarily integrated steelmaker. They see the value in blast furnaces just as we at Cleveland-Cliffs do. Through their recently acquired and now third tier subsidiary, US Steel, Tokyo-based Nippon Steel is now an active participant within the American market.

如果不是這樣，新日鐵就會在美國以少得多的投資建造大量新的電弧爐短流程鋼廠，而不會收購一家主要的綜合鋼鐵廠。他們和我們克利夫蘭克利夫斯公司一樣，看到了高爐的價值。透過其最近收購的、現已成為第三級子公司的美國鋼鐵公司 (US Steel)，總部位於東京的新日鐵公司現已成為美國市場的活躍參與者。

This effect and effect creates a new level of optionality for other market participants, Cleveland-Cliffs included, among several possible outcomes for an investment in Cliffs becomes an attractive opportunity for other foreign entities, particularly due to our unique position as a major supplier to the automotive sector and of electrical steels.

這種效應和影響為包括克利夫蘭-克利夫斯在內的其他市場參與者創造了新的選擇性，在對克利夫斯進行投資的幾種可能結果中，這對其他外國實體來說是一個有吸引力的機會，特別是由於我們作為汽車行業和電工鋼主要供應商的獨特地位。

With that, I will turn it over to Celso.

說完這些，我將把麥克風交給 Celso。

Thank you. Q2 results were largely driven by better realized pricing, cost reductions and record shipments. Volumes of 4.3 million tons represented a 150,000-ton increase from the prior quarter and allowed us to run our mills more efficiently. We had previously expected a slight unit cost increase quarter over quarter. But with the solid operating performance, we actually recorded a $15 per ton unit cost decrease.

謝謝。第二季的業績主要得益於更好的實際定價、成本降低和創紀錄的出貨量。430 萬噸的產量比上一季增加了 15 萬噸，這使我們能夠更有效率地運作工廠。我們之前曾預計單位成本將較上季略有增加。但由於經營業績穩健，我們的單位成本實際上下降了 15 美元/噸。

Average selling price of $1,015 per ton represented a $35 per ton increase from the prior quarter, driven primarily by higher index pricing, and partially offset by lower slab and plate pricing. Stelco pricing was relatively flat. After the Arcelor slab agreement expires in December, assuming today's pricing and demand environment, we should get another $125 million per quarter in EBITDA boost.

平均售價為每噸 1,015 美元，較上一季每噸上漲 35 美元，主要原因是指數價格上漲，但因板坯和板材價格下跌而部分抵消。Stelco 的定價相對平穩。在 Arcelor 板坯協議於 12 月到期後，假設今天的定價和需求環境，我們每季的 EBITDA 應該會再增加 1.25 億美元。

From a cash flow perspective, inventory reductions, particularly in raw materials like iron ore and coke, served as a meaningful source of cash in Q2. The acquisition of Stelco came with the benefit of being able to use excess coke production out of Hamilton in our US mills. Stelco's pricing has been hampered by the excessive imported steel penetration in Canada, but the value of being able to use Hamilton coke has been the biggest driver of us reaching our cost synergy target.

從現金流的角度來看，庫存減少，特別是鐵礦石和焦炭等原料的減少，成為第二季重要的現金來源。收購 Stelco 的好處是，我們能夠在美國工廠使用漢密爾頓生產的過剩焦炭。加拿大進口鋼材過多阻礙了 Stelco 的定價，但能夠使用漢密爾頓焦炭的價值是我們實現成本協同目標的最大驅動力。

As a result, we were able to let one of our third-party coke supply contracts expire on June 30, reducing our need to purchase coke externally. We have another coke contract expiring at the end of this year that we will no longer need either. Our ability to source more coke internally in and of itself has already made Stelco a valuable contributor for the combined company. And this will be further bolstered once the next coke contract expires.

因此，我們能夠讓一份第三方焦炭供應合約於 6 月 30 日到期，從而減少了我們從外部購買焦炭的需要。我們還有另一份可樂合約將於今年年底到期，我們也不再需要它了。我們內部採購更多焦炭的能力本身已經使 Stelco 成為合併後公司的寶貴貢獻者。一旦下一個焦炭合約到期，這種勢頭將進一步增強。

On top of that, based on current market dynamics, we expect even lower coal prices for 2026. Our balance sheet remains well positioned as a result of Q2 and future working capital reductions. We ended the quarter with $2.7 billion of liquidity and no near-term maturities. Net debt remains manageable and is soon to be on a downward trajectory.

除此之外，根據目前的市場動態，我們預期 2026 年煤炭價格還會更低。由於第二季和未來的營運資本減少，我們的資產負債表仍然保持良好狀態。本季末，我們的流動資金為 27 億美元，且沒有短期到期債務。淨債務仍然可控，並且很快就會呈下降趨勢。

Our capital allocation priorities remain clear, use excess free cash flow to pay down debt and reach our leverage target. This is the history of my nine years at Cliffs. We lever up to make necessary acquisitions and we use the resulting free cash flow to pay down debt quickly. Potential non-core asset sales could also accelerate debt reduction.

我們的資本配置重點依然明確，利用多餘的自由現金流償還債務並達到我們的槓桿目標。這就是我在 Cliffs 九年的歷史。我們利用槓桿進行必要的收購，並利用由此產生的自由現金流快速償還債務。潛在的非核心資產出售也可能加速債務削減。

We have now engaged JPMorgan as our adviser and launched sell-side processes to explore the potential sale of certain noncore operating assets. These selected assets could represent billions of dollars of value, and we will only sell these assets if the sum of the parts valuation unlocks trapped value for Cleveland-Cliffs shareholders.

我們目前已聘請摩根大通擔任我們的顧問，並啟動賣方流程，探討出售某些非核心營運資產的潛在可能性。這些選定的資產可能價值數十億美元，只有當各部分估值總和能夠為克利夫蘭克利夫斯股東釋放出被困價值時，我們才會出售這些資產。

In addition to these noncore operating assets, we are also receiving inbound interest in some of our recently idled facilities, which could also sell for cash. These sites, particularly Riverdale, Steelton and Conshohocken are all uniquely positioned geographically and have what data center developers are looking for: access to power and water with the infrastructure already in place. While these properties are idled, if opportunities don't arise that justify restarting, they have good value and the amount of interest we have received in these properties so far is reflective of this.

除了這些非核心營運資產外，我們還獲得了一些最近閒置的設施的入駐權益，這些設施也可以出售以換取現金。這些地點，特別是 Riverdale、Steelton 和 Conshohocken，都具有獨特的地理位置，並且具備資料中心開發商所尋求的條件：電力和水源以及已經到位的基礎設施。雖然這些房產處於閒置狀態，但如果沒有出現值得重新啟動的機會，它們仍然具有良好的價值，到目前為止，我們對這些房產的興趣程度就反映了這一點。

If we're successful in executing any sales, the cash proceeds will go directly to debt reduction. We also took actions during the quarter to lower both our SG&A run rate and capital expenditure budget. Our full-year 2025 expectations for these items were reduced by a combined $50 million. These were proactive surgical reductions based on our newly tightened footprint. Our overhead structure is now leaner, and we're getting more out of every dollar we spend.

如果我們成功完成任何銷售，現金收益將直接用於減少債務。我們也在本季採取了措施，降低了銷售、一般及行政費用 (SG&A) 運作率和資本支出預算。我們對這些項目的 2025 年全年預期總共減少了 5,000 萬美元。這些都是基於我們新近收緊的足跡而主動進行的外科手術式削減。我們的管理費用結構現在更加精簡，我們花費的每一美元都能獲得更多的回報。

Our steel unit cost reduction target of $50 per ton remains firmly on track. This cost reduction pace, combined with healthy HRC pricing, is expected to support growing EBITDA generation in the coming quarters. Operational discipline, capital prudence and free cash flow generation remain our top financial priorities. We're confident that these principles will continue to guide us to even better results in the coming quarters.

我們的鋼鐵單位成本降低目標為每噸 50 美元，目前仍穩定推進。這一成本削減速度，加上健康的熱軋捲定價，預計將支持未來幾季 EBITDA 的成長。營運紀律、資本審慎和自由現金流產生仍然是我們的首要財務重點。我們相信，這些原則將繼續指導我們在未來幾季取得更好的業績。

With that, I'll turn it over to Lourenco for his closing remarks.

接下來，我將把發言時間交給 Lourenco 來做總結發言。

Thanks, Celso. We showed the strong improvements in pricing, costs and sales volumes in Q2. Going forward, the macro trends are aligning in our favor. With that, the second half of 2025 is shaping up to be much better than the first half.

謝謝，塞爾索。我們在第二季展示了定價、成本和銷售量的強勁改善。展望未來，宏觀趨勢正對我們有利。因此，2025 年下半年的情況將比上半年好得多。

I will now turn it back to Rob for Q&A.

現在我將把話題交還給 Rob 進行問答。

(Operator Instructions) Nick Giles, B Riley Securities.

（操作員指示）Nick Giles，B Riley Securities。

Good to see the cost reductions come through in 2Q. And so I just was wondering how should we think about cadence of cost reductions from here? How much of a sequential change could we ultimately see in 3Q? And was curious, just wanted to get your thoughts on working capital considerations. Thank you very much.

很高興看到第二季成本降低。所以我只是想知道我們應該如何考慮從現在開始降低成本的節奏？我們最終會在第三季看到多大的連續變化？我很好奇，只是想聽聽您對營運資金考慮的看法。非常感謝。

Yeah, sure. Hey, Nick, good morning. Happy to provide some general guidance for Q3. For Q2, quarter over quarter costs were down $15 a ton versus our expectations to be up $5 per ton. So we're happy to get the cost reduction going here in this quarter. Looking ahead to next quarter, we expect cost to be down another, call it, $20 per ton from Q2 to Q3 with even further reductions in costs in Q4. Q3 costs were originally expected to be down more than $20 per ton, but some of the cost reductions were pulled forward into Q2, a trade-off that we're happy to take.

是的，當然。嘿，尼克，早安。很高興為第三季提供一些一般性指導。對於第二季度，成本環比下降了 15 美元/噸，而我們預期的是上漲 5 美元/噸。因此，我們很高興本季能夠降低成本。展望下個季度，我們預計成本將從第二季到第三季再下降 20 美元/噸，第四季的成本將進一步下降。第三季度的成本最初預計每噸下降 20 美元以上，但部分成本削減被提前到第二季度，我們很樂意接受這種權衡。

The asset optimization initiatives that we've been talking about are in motion, and you can see that here already with the Q2 reductions. And we expect Q3 to also benefit from similar shipment levels as Q2. As it relates to the full year, we still expect costs to be down that $50 per ton in 2025 relative to 2024. And that's largely driven by the optimization of our footprint, reduction of fixed costs, reduced overhead and improved efficiencies and a favorable cost mix as well.

我們一直在談論的資產優化計劃正在進行中，您可以從第二季度的減量中看到這一點。我們預計第三季的出貨量也將與第二季相似。就全年而言，我們仍然預計 2025 年的成本將比 2024 年每噸下降 50 美元。這在很大程度上得益於我們足跡的最佳化、固定成本的降低、管理費用的減少、效率的提高以及有利的成本組合。

I appreciate that detail. My second question, I was wondering if you could remind us how we should start to think about CapEx expectations in 2027. I believe you do have a reline next year. So curious what kind of puts and takes we should have in mind, particularly some of the alterations at Middletown.

我很欣賞這個細節。我的第二個問題是，我想知道您是否可以提醒我們應該如何開始考慮 2027 年的資本支出預期。我相信你明年確實會重新排隊。所以我很好奇我們應該考慮什麼樣的改變，特別是米德爾頓的一些改變。

Yeah, I'll take that, Nick. Look, first of all, we don't have a reline next year. Our next reline is 2027. So there's no reline, no CapEx related to reline in 2026. As far as Middletown, the original project that we had there was basically replacing the blast furnace [with] two EMFs and the direct reduction line. And that line would be supported by hydrogen instead of natural gas. That was the end game of that project in Middletown.

是的，我接受，尼克。首先，我們明年不會進行重新排隊。我們的下一次調整是 2027 年。因此，2026 年無需進行任何修復，也無需進行任何與修復相關的資本支出。就米德爾頓而言，我們在那裡進行的原始項目基本上是用兩個 EMF 和直接還原線取代高爐。該生產線將由氫氣而非天然氣支撐。這就是米德爾敦計畫的最終結果。

The very first thing it's clear by now that we will not have availability of hydrogen. So there is no point in pursuing something that we know for sure that's not going to happen. So it's not like that project was canceled by the DOE because it was not. We informed the DOE that we would not be pursuing that project.

現在最清楚的是，我們將無法獲得氫氣。因此，追求那些我們確信不會發生的事情是沒有意義的。所以，該計畫並沒有被能源部取消，因為事實並非如此。我們告知能源部我們不會繼續該項目。

What generates a very good conversation with the current DOEs or current team of the Department of Energy on revamping that project in a way that we preserve and enhance Middletown using beautiful coal, beautiful coke, beautiful natural gas, our American iron ore from Minnesota, keeping the flagship Middletown works as our flagship facility supplying automotive steels and making our blast furnace operate fully under AI.

我們與現任能源部或現任團隊就改造該項目進行了非常好的對話，以便我們能夠利用優質的煤炭、優質的焦炭、優質的天然氣以及來自明尼蘇達州的美國鐵礦石來保護和改善米德爾頓，保持米德爾頓旗艦工廠作為我們供應汽車鋼材的旗艦工廠，並使我們的高爐完全在人工智能下運行。

So that's what we have in scope right now, and we're working with the DOE and I'm giving you as much details that I can share at this very moment.

這就是我們目前的工作範圍，我們正在與能源部合作，我會向你們提供盡可能多的細節。

Mike Harris, Goldman Sachs.

高盛的麥克·哈里斯。

Just a question around free cash flow. You have expectations that EBITDA continues to improve and you have the cost reduction well under way. So how should we think about free cash flow generation in the second half? And maybe speak to expectations of that being positive and how sustainable that would be.

這只是一個關於自由現金流的問題。您預期 EBITDA 將持續改善，且成本削減也將順利進行。那我們該如何看待下半年自由現金流的產生呢？也許可以談談對此的積極期望以及其可持續性。

Yeah, sure. Hey Mike, it's Celso here. Starting with Q2 free cash flow, we had a cash outflow of $67 million for the quarter, and that was largely driven by a meaningful release in working capital as we reduced inventory dramatically. Going forward, we should release even more working capital in the second half of this year, and we've shown our ability to generate robust free cash flow in the past.

是的，當然。嘿，麥克，我是塞爾索。從第二季的自由現金流開始，我們本季的現金流出為 6,700 萬美元，這主要是由於我們大幅減少庫存，營運資金得到了有意義的釋放。展望未來，我們應該在今年下半年釋放更多的營運資金，而且我們過去已經證明了我們有能力產生強勁的自由現金流。

If you look back in prior years, we've averaged over $1 billion of free cash flow each year since our transformation, so the potential for free cash flow generation is meaningful. And if we see some tailwinds and sustained support from pricing, that could accelerate pretty fast. And as we go into an environment where we're generating free cash flow, as we've been saying, we're going to use all of that to pay down debt so you could see the deleveraging happen very quickly.

如果回顧過去幾年，自轉型以來，我們每年平均有超過 10 億美元的自由現金流，因此產生自由現金流的潛力是巨大的。如果我們看到一些順風和持續的定價支持，那麼這一進程可能會非常快。正如我們一直在說的，當我們進入一個產生自由現金流的環境時，我們將利用所有這些現金來償還債務，因此你會看到去槓桿化很快就會發生。

Yeah, let me just add a couple things on that, Mike. Remember that we shut down facilities that were [eating] in our ability to generate cash: two in Pennsylvania and one in Illinois. That's behind us. So that's number one. Number two is that our integrated model is predicated on volume.

是的，麥克，讓我補充幾點。請記住，我們關閉了那些影響我們創收能力的設施：賓州有兩家，伊利諾州有一家。那已經是過去的事了。這是第一點。第二，我們的綜合模型以數量為前提。

So more than anything, we need consistent volumes, and the volumes are going away not only through the well-established practice of importing steel into the country, but with the newly developed practice of importing cars into the country. President Trump addressed both with Section 232 tariffs for steel and for cars. So now, the one important is steel is no longer a fact as it was before. Now people would touch imported steel with a lot of care because they could get burned.

因此，最重要的是，我們需要穩定的數量，而數量正在減少，不僅是因為我們已經確立了進口鋼鐵的做法，還因為新出現的進口汽車的做法。川普總統透過第 232 條對鋼鐵和汽車徵收關稅來解決這兩個問題。所以現在，鋼鐵的重要性不再像以前那麼重要了。現在人們在接觸進口鋼材時會非常小心，因為可能會被燙傷。

And second, car manufacturers are finally waking up for the fact that the easiest and fastest way to produce more cars in the United States is deploying back the installed capacity that's in place already. Just bring more ships, hire more people, produce more cars, start now. Don't just promise to build plants to produce cars in five six years. That's not going to apply. Let's produce more cars now. We're seeing that as we speak.

其次，汽車製造商終於意識到，在美國生產更多汽車的最簡單、最快捷的方式就是重新部署已經安裝的產能。只需引進更多船隻、僱用更多人員、生產更多汽車，現在就開始。不要只是承諾在五、六年內建廠生產汽車。這不適用。我們現在就生產更多的汽車。我們說話的時候就看到了這一點。

And we are -- we Cleveland-Cliffs, we are the only ones that have the installed capacity to promote that to happen. So it's happening already and it will pick up steam as we go. So all these things will point out for higher cash flow generation. And keep in mind, I did not mention anything regarding prices. We depend on volume, we depend on reducing costs, and our cost reduction in our integrated model is predicated on how base loads and volumes going through the footprint.

而我們—我們克里夫蘭-克利夫斯，我們是唯一擁有安裝能力來推動這一目標實現的公司。所以它已經發生了，並且會隨著我們的進展而加速。因此，所有這些都表明將產生更高的現金流。請記住，我沒有提到任何有關價格的事情。我們依賴數量，我們依賴降低成本，並且我們整合模型中的成本降低取決於基本負載和通過足跡的數量。

Okay, thanks. That's a very good color. I appreciate that. And then I guess just as a follow up, if demand picks back up, how much can this reduce the working capital unwind?

好的，謝謝。這是一個非常好的顏色。我很感激。然後我想作為後續問題，如果需求回升，這可以減少多少營運資本？

You are going to take that Celso?

你要帶走那個 Celso 嗎？

Yeah, sure. I mean, I think we've sort of talked about it already. We saw a meaningful inventory reduction here in Q2, and we expect that trend to continue here into Q3 and Q4.

是的，當然。我的意思是，我想我們已經討論過這個問題了。我們在第二季看到庫存大幅減少，我們預計這一趨勢將持續到第三季和第四季。

Lawson Winder, Bank of America.

美國銀行的勞森·溫德（Lawson Winder）。

Celso, you didn't touch on the average selling price expected for Q3 '25. Could you touch on how that's shaping up and could you also touch on the volume expectation for Q3 '25? And also I just wanted to say nice work on the cost reduction in Q2. Thank you.

Celso，您沒有提到 25 年第三季的預期平均售價。能否談談事情進展如何？您能否談談 2025 年第三季的銷售預期？而且我也想說第二季的成本削減工作做得很好。謝謝。

Yeah, sure, hey Lawson. Yeah, look, just to add some more color into Q3, just generally we expect to see continued EBITDA improvement from Q2 to Q3. I want to make that very clear. Shipments should be similar in Q3 as they were in Q2 at that 4.3 million-ton level.

是的，當然，嘿，勞森。是的，看，只是為了給第三季增添一些色彩，總的來說，我們預計從第二季到第三季 EBITDA 將持續改善。我想把這一點講清楚。第三季的出貨量應該與第二季相似，都是 430 萬噸。

As it relates to average selling price, I think we kind of give you guys the calculus to be able to get to that number. But just to sort of reiterate how the composition works, if you want to take all the pieces and calculate your own ASP from Q2 to Q3, you can do the math. It's about one third fixed on a full-year price, with resets throughout the year and then about 20% of our volumes are under CRU month lags.

由於它與平均售價有關，我認為我們會給你們提供計算方法，以便能夠得出這個數字。但只是為了重申一下組成是如何運作的，如果你想要把所有的部分都拿出來併計算出從 Q2 到 Q3 的 ASP，你可以做一下計算。大約有三分之一固定在全年價格上，全年都會進行重新設定，而我們約 20% 的交易量受到 CRU 月滯後的影響。

Call it 80% is the slab agreement on a two-month lag. 5% is CRU with a quarter lag, and about a third is the remainder kind of spot, and that includes the Stelco volumes as well. So I think with that, you should get enough to calculate Q3.

我們可以稱其為 80% 是滯後兩個月的板坯協議，5% 是滯後四分之一的 CRU，大約三分之一是剩餘的現貨，其中也包括 Stelco 的交易量。所以我認為，有了這些，你就足以計算出 Q3 了。

And then on the volumes, could you just give us an idea of how those are shaping up? And then further I just wanted to ask about the D&A as well in Q3. So there was a step up in Q2, how's that expected to move on a Q-over-Q basis versus Q2 into Q3. Thanks.

然後關於交易量，您能否向我們介紹一下交易量的情況？然後我還想問一下第三季的 D&A 狀況。因此，第二季出現了成長，預計第三季與第二季相比將較上季成長如何。謝謝。

Yeah, volumes in Q3 should be around the same level as Q2 at that 4.3 million-ton level total. So call it flat from Q2 to Q3. DD&A stepped up due to accelerated depreciation from the idle facilities. But it should return back to, call it, Q1 levels.

是的，第三季的產量應該與第二季持平，總量為 430 萬噸。因此從 Q2 到 Q3 都持平。由於閒置設施加速折舊，DD&A 增加。但它應該回到所謂的 Q1 水平。

Fantastic. If I could just get your comments, just one final point on Canada, and there is some concern about the economy there slowing down. I'd like to just hear your views on what you're seeing, particularly given that you're selling 100% of your volumes into Canada. Are those concerns justified from what you're seeing from a steel industry point of view? Thanks. That's all from me.

極好的。如果我可以聽聽您的評論，最後我再說一點關於加拿大的問題，人們對那裡的經濟放緩有些擔憂。我想聽聽您對目前情況的看法，特別是考慮到您的產品 100% 都銷往加拿大。從鋼鐵業的角度來看，這些擔憂是否合理？謝謝。我要說的就這些。

Lawson, look, let's clarify. We acquired Stelco, and Stelco is the steel company of Canada, in November of 2024. So the name is Steel Company of Canada. So it was not supposed to be the steel company that disrupts the domestic market in the Great Lakes of the United States. So that was the main reason why I bought Stelco because I believe in Canada. The problem is that apparently the Canadians, particularly Canadian politicians, they don't believe in Canada. They believe that Canada needs to be part of Europe, they're not. They believe that Canada depends on the United States, they don't. So they need to wake up and stop being lazy in terms of thinking their country as a satellite of Europe and the United States.

勞森，聽著，讓我們澄清一下。我們於 2024 年 11 月收購了 Stelco，Stelco 是加拿大鋼鐵公司。所以名字是加拿大鋼鐵公司。所以，擾亂美國五大湖地區國內市場的不應該是這家鋼鐵公司。這就是我購買 Stelco 的主要原因，因為我相信加拿大。問題在於，加拿大人，特別是加拿大政客，顯然不相信加拿大。他們認為加拿大需要成為歐洲的一部分，但事實並非如此。他們認為加拿大依賴美國，但事實並非如此。所以他們需要醒悟過來，不要再懶惰地把自己的國家視為歐洲和美國的衛星國。

They attracted bad things said to them because it's their own making. They need to grow a pair and understand that Canada is a very good country with a lot of potential, with a lot of critical minerals, with a lot of things that can make it a powerhouse. The very first thing they need to tell foreigners, get out of my market. Why? They have to lock in the import levels of 2024 that basically killed the Canadian steel industry because they can't sell in Canada.

他們招致了別人對他們說的壞話，因為這是他們自己造成的。他們需要成長起來，明白加拿大是一個非常好的國家，具有很大的潛力，擁有許多關鍵的礦產資源，有很多可以使其成為強國的東西。他們首先要告訴外國人的是，離開我的市場。為什麼？他們必須鎖定 2024 年的進口水平，這基本上扼殺了加拿大鋼鐵業，因為他們無法在加拿大銷售。

At the very moment that Section 232 hit, we are of Stelco started selling as far as British Columbia because the ones in the Western Canada market realized that could no longer rely on Asians to supply steel to them. But then they went back because -- and it's not like just the liberals, the conservatives are doing a horrible job too. So long story short, Canada can fix themselves. They import an amount of steel into Canada, that's pretty equivalent to the size of the Canadian market. If they stop that, we are done. They are self-sufficient. And we're able to supply the market. We proved that.

就在第 232 條款生效的那一刻，我們 Stelco 就開始向不列顛哥倫比亞省銷售產品，因為加拿大西部市場的公司意識到不能再依賴亞洲人來供應鋼材。但後來他們又回去了，因為──不只是自由主義者，保守主義者也做得很糟。長話短說，加拿大可以自我修復。他們向加拿大進口的鋼鐵數量與加拿大市場的規模相當。如果他們停止這樣做，我們就完了。他們自給自足。我們有能力供應市場。我們證明了這一點。

The difference between me and the rest is that I have very little patience to keep repeating the same thing time and time and time and time again. I have repeated enough the normal opinion. By the way, Cleveland-Cliffs through Stelco in Canada has a much bigger influence than Cleveland-Cliffs in the United States, and we have a lot of influence here.

我和其他人的差別在於，我沒有耐心一次又一次地重複同樣的事情。我已經重複了足夠多的正常觀點。順便說一句，克利夫蘭克利夫斯透過 Stelco 在加拿大的影響力比克利夫蘭克利夫斯在美國的影響力大得多，而且我們在這裡也有很大影響力。

So you should expect good things because I believe there are some politicians in Canada within the government that are waking up and seeing [lights], and I have a lot of hope in my friends, cabinet members of the Carney government. Let's see how Prime Minister Carney will react. He's not a central banker anymore. I don't like central bankers, but now he's a prime minister. So time to step up and do what's necessary for Canada. That's what I expect there.

所以你應該期待好事，因為我相信加拿大政府內的一些政客正在覺醒並看到曙光，而且我對我的朋友、卡尼政府的內閣成員抱有很大希望。讓我們看看卡尼首相將如何反應。他不再是央行總裁了。我不喜歡央行總裁，但現在他是一位首相。所以現在是加拿大採取行動並採取必要行動的時候了。這正是我所期望的。

I don't know if I will answer your question properly, Lawson. Are you okay with that?

我不知道我是否能正確回答你的問題，勞森。你同意嗎？

Phil Gibbs, KeyBanc Capital Markets.

KeyBanc 資本市場公司的 Phil Gibbs。

Lourenco, can you talk a little bit about automotive volumes in the second quarter and how they developed relative to maybe Q1 or the late stages of 2024 where I know the volumes were under pressure?

洛倫科，您能否談談第二季的汽車銷量，以及相對於第一季或 2024 年後期而言，汽車銷量如何發展？我知道當時汽車銷售面臨壓力。

Actually, it's the opposite. The volumes are growing. We are seeing all the OEMs producing more cars, announcing more moves into the US [stopping] importing steel from Asia to feed the plants in Mexico while they are moving the plants from Mexico to the United States. But in the meantime, instead of buying steel from Asia, they are buying steel from the United States. We're starting to supply Mexico from the United States with the promise that we are going to supply them here as they grow the production of some models in the United States.

事實上，情況恰恰相反。數量正在增加。我們看到所有原始設備製造商都在生產更多的汽車，宣布進一步進軍美國市場，[停止]從亞洲進口鋼材來供應墨西哥的工廠，同時將工廠從墨西哥遷往美國。但同時，他們不是從亞洲購買鋼鐵，而是從美國購買鋼鐵。我們開始從美國向墨西哥供貨，並承諾隨著墨西哥在美國擴大某些車型的產量，我們將在這裡向他們供貨。

We are seeing several announcements of models that used to be built in other places being moved back to the United States. The biggest example is one of the OEMs used to produce entire cars in South Korea and import them to the United States and now they have already discontinued the practice and they will start producing the model here in the United States. So as we move into the second half, things will be more visible; next year will be even more visible. It takes time, but it's already happening, and the numbers will start to show.

我們看到有幾份公告稱，以前在其他地方生產的車型將運回美國。最大的例子是，一家原始設備製造商過去常常在韓國生產整車，然後進口到美國，現在他們已經停止了這種做法，並將開始在美國生產該車型。因此，隨著我們進入下半年，情況將更加明朗；明年將會更加明朗。這需要時間，但它已經發生了，而且數字將會開始顯現。

Thanks, Lourenco. I meant last year they were under pressure. I meant the recovery happening now, just curious on the level and in terms of how much more you guys can think you can grow that mix looking ahead.

謝謝，Lourenco。我的意思是去年他們承受著壓力。我的意思是現在正在復蘇，我只是好奇復甦的水平，以及你們認為未來這種組合還能成長多少。

We can grow a lot. I will not give you a number. First, because I don't have it, and I don't want to give you an inaccurate number. But second, because it all depends on how fast these folks will start producing cars. We are seeing some OEMs that don't really produce a lot of cars here in the United States plan to produce the totality of what they sell in this market in the United States.

我們可以成長很多。我不會給你一個數字。首先，因為我沒有這個數字，而且我不想給你一個不準確的數字。其次，這一切都取決於這些人開始生產汽車的速度。我們看到一些在美國實際上並沒有生產很多汽車的原始設備製造商計劃在美國生產他們在美國市場上銷售的全部汽車。

So I think this will be one of the biggest accomplishments of the Trump administration when you look back in the three or four years into the future. It will be the resurgence of automotive production in the United States, and of course Cleveland-Cliffs is the only one that's really equipped to support this growth as we speak. Of course, everybody can build as many plants as they want. It's so easy to build, as you know, to build a blast furnace and the BOF in this country and so fast.

所以我認為，當你回顧未來三、四年時，這將是川普政府最大的成就之一。這將是美國汽車生產的復甦，當然克利夫蘭克利夫斯是唯一一家真正有能力支持這一成長的公司。當然，每個人都可以建造任意數量的工廠。正如你們所知，在這個國家建造高爐和轉爐非常容易，而且速度非常快。

So we should expect that to happen in the next 24 hours. But in the meantime, we are done, we have it, we have the facilities, we have the finishing capabilities. We have all these labs properly approved with the OEMs. So one of our competitors, and I have his labs approved very soon, as you know, can't wait to get rid of that lab contract. That was the last thing that I negotiated when I acquired the assets of ArcelorMittal USA. I'm glad I did for only five years. So in the five years are coming to an end, December 9, 2025, at 11:59 PM.

所以我們應該預計這將在接下來的 24 小時內發生。但同時，我們已經完成了，我們擁有了它，我們有了設施，我們有了完成能力。我們所有這些實驗室都已獲得 OEM 的適當批准。因此，我們的一個競爭對手，正如你所知，他的實驗室很快就獲得了批准，他迫不及待地想擺脫那個實驗室合約。這是我收購安賽樂米塔爾美國公司資產時談判的最後一件事。我很高興我只做了五年。那麼五年即將結束，也就是2025年12月9日晚上11點59分。

I think I gave you as much color and [volume] as I could at this point.

我想我已經盡力給你提供了盡可能多的顏色和[音量]。

Thanks, Lourenco. I like a follow up for Celso. How much are your overall businesses on CRU quarterly? I think I got the rest of the calculations you provided. Thanks.

謝謝，Lourenco。我喜歡 Celso 的後續行動。你們每季在 CRU 上的整體業務量是多少？我想我已經了解了您提供的其餘計算結果。謝謝。

Yeah, no problem, Phil, it's 5% CRU quarter lag.

是的，沒問題，菲爾，CRU 季度落後為 5%。

Martin Englert, Seaport Research Partners.

馬丁·恩格勒特（Martin Englert），海港研究合作夥伴。

I appreciate the time. On the coke contracts, the June contract that ended was with Haverhill-2 for 550,000 tons, and then is the December ending contract with Haverhill-1 for 400,000. Is that correct?

我很感激你抽出時間。焦炭合約方面，6月合約與Haverhill-2結束，合約量為55萬噸，12月份合約與Haverhill-1結束，合約量為40萬噸。對嗎？

Yes, that's correct, Martin.

是的，馬丁，沒錯。

Do you have roughly like around the $70 per ton benefit when you produce internal coke versus having to buy external on contract, or do you have any goalposts for a range on what that benefit looks like?

當您生產內部焦炭而不是按照合約從外部購買時，您是否能獲得大約每噸 70 美元的收益，或者您是否對該收益的範圍有一個目標？

No, it's bigger than that. Exactly north of $100.

不，它比那更大。正好超過 100 美元。

Okay, appreciate it. One quick follow up. Are you seeing -- you mentioned winning some business in autos in Mexico for contracts. Are you seeing anything in the appliance market outside of the United States because of downstream 232 duties, meaning if they use US Steel, then they don't get hit with the duty when importing the appliance.

好的，謝謝。快速跟進。您是否看到了——您提到在墨西哥贏得了一些汽車業務合約。由於下游 232 關稅，您是否看到美國以外的家電市場出現任何變化，這意味著如果他們使用美國鋼鐵，那麼他們在進口家電時就不會受到關稅的打擊。

Yeah, it's a different dynamics in the two of them. What I was talking about Mexico is that some facilities in Mexico were designed to be the dumping ground of [trans] shipments from places like Korea and Japan and others. So that practice is no longer acceptable. So these two suppliers that used to be the suppliers for these facilities in Mexico are now buying in the United States.

是的，他們兩人的動態不同。我所說的墨西哥是指墨西哥的一些設施被設計為來自韓國、日本等地的[跨]貨物的傾倒場。所以這種做法已不再被接受。因此，這兩家曾經是墨西哥這些工廠的供應商現在正在美國採購。

And that's where we are seeing opportunities in Mexico. We're not super excited about because this is a temporary thing, don't forget. These plants are not supposed to be in Mexico. They're supposed to be in the United States. But for now, it's better to sell there instead of allowing steel from Japan to land in Mexico and then depart comes to the United States to unfairly compete with our markets.

這就是我們在墨西哥看到的機會。我們並不是特別興奮，因為這只是暫時的，別忘了。這些植物不應該生長在墨西哥。他們應該在美國。但就目前而言，最好是在那裡銷售，而不是讓日本的鋼鐵抵達墨西哥，然後運往美國與我們的市場進行不公平的競爭。

So that was not the spirit of the USMCA and we are just bringing back what was in paper and people by to pushing the envelope started towing the line and then crossed the line. So we are fixing that. That's the dynamics with Mexico and the United States.

所以這不是 USMCA 的精神，我們只是把紙上的東西帶了回來，人們開始挑戰極限，開始拖延界限，然後越界了。所以我們正在解決這個問題。這就是墨西哥和美國之間的動態。

As far as appliances, actually, we were able to include appliances in section 232 as well, and that did for appliances exactly what it is doing for automotive. So the big ones are starting to produce appliances in the United States again. And that's also coherent with the goals that President Trump put in place, and he is falling to what he said he would do.

就家用電器而言，實際上，我們也能夠將家用電器納入第 232 節，這對於家用電器的作用與對於汽車的作用完全相同。因此，大型企業又開始在美國生產家用電器。這也與川普總統所訂定的目標一致，他正在兌現他所承諾的諾言。

So we are seeing more appliance production in the United States. We'll see more appliances production in the United States, and that would be good not just for Cliffs, it would be good for everybody that produces steel here in the United States.

因此，我們看到美國家電產量增加。我們將看到美國生產更多的家電，這不僅對 Cliffs 有利，而且對在美國生產鋼鐵的每個人都有好處。

So broadly speaking, it sounds like when you think about the total market size of fixed annual contracts, that they'll be a bigger market to participate in looking forward in the coming quarters, in the coming year with some of that coming back and also winning business south of the border, correct?

所以從廣義上講，當你考慮固定年度合約的總市場規模時，聽起來它們將是一個更大的市場，在未來幾個季度、明年，它們將回歸，並贏得邊境以南的業務，對嗎？

Yeah, absolutely. That's a fair statement. It's a fair conclusion.

是的，絕對是如此。這是一個公平的說法。這是一個公平的結論。

Okay. Any considerations when we think about winning more auto market share and fixed contracts in Mexico on mix or that structure there with the contracts or roughly comparable to what you participate in the United States?

好的。當我們考慮在墨西哥贏得更多的汽車市場份額和固定合約時，有什麼考慮嗎？或者那裡的合約結構與您在美國參與的合約結構大致相當？

Very comparable. And the only big difference at this point is freight, but freight is negotiable, and each case is a different case, and we are negotiating accordingly.

非常具有可比性。目前唯一的大區別是運費，但運費是可以協商的，而且每個案例都是不同的，我們正在進行相應的協商。

Okay, appreciate it and congratulations on the cost performance in the quarter. Thank you.

好的，謝謝，並祝賀本季的成本表現。謝謝。

Alex hacking, Citi.

亞歷克斯·哈金斯，花旗銀行。

I just have one question. Lourenco, in your comments, you mentioned that foreign investment in Cliffs could be an attractive opportunity. There's a lot of potential range in foreign investment, from minority stakes and assets to buying the whole company. Could you maybe give more color on what kind of transactions that you would potentially explore? Thank you.

我只有一個問題。洛倫索，在您的評論中，您提到外國對 Cliffs 的投資可能是一個有吸引力的機會。外國投資的潛在範圍很廣，從少數股權和資產到收購整個公司。您能否詳細說明您可能探索的交易類型？謝謝。

Yeah. Look, we are an asset rich company. We believe that we are so undervalued at this point that the sum of the parts is a lot more valuable than the company as it trades in the stock exchange. So we're open and we are at this point in active conversations on a number of non-core assets that could be generating billions of dollars in cash inflow that will be used to pay down debt.

是的。看，我們是一家資產雄厚的公司。我們認為，目前我們的估值嚴重低估，各部分價值的總和比公司在證券交易所交易時的價值高得多。因此，我們持開放態度，目前正在積極討論一些非核心資產，這些資產可能會產生數十億美元的現金流入，用於償還債務。

Everything else is possible and including carve-outs in our footprint, and then I'm talking about core assets, but of course I'm not going to speculate, but we are entertaining a lot of inbound interest from different credible potential suitor for endeavors that we might or might not take going forward.

其他一切都是可能的，包括在我們的足跡中進行剝離，然後我談論的是核心資產，但我當然不會去推測，但我們正在從不同的可信潛在追求者那裡獲得很多興趣，他們可能會或可能不會繼續努力。

Carlos De Alba, Morgan Stanley.

卡洛斯·德阿爾巴，摩根士丹利。

So, on the cost performance in the quarter, obviously it was better than -- much better than expected, yet the guidance for the year remained at $50 year-on-year decline. Is this a conservative outlook? And could you potentially perform better than the $50 decline just in line of what you did in the quarter?

因此，就本季的成本表現而言，顯然比預期要好得多，但全年指導價仍為同比下降 50 美元。這是一種保守的觀點嗎？而且，您的業績有可能比本季 50 美元的降幅更好嗎？

Yeah, hey Carlos, it's Celso. Yeah, look, we wanted to be conservative. And as I stated earlier, we were able to deliver a quarter-over-quarter cost reduction when we initially had an expectation to go up. So some of that has been pulled forward, so that's why we're keeping the same guidance for the full year, but I think there, your point is a fair point.

是的，嘿卡洛斯，我是塞爾索。是的，你看，我們想保持保守。正如我之前所說，我們最初預計成本會上升，但最終卻實現了環比成本下降。因此，其中一些已被提前，這就是為什麼我們對全年保持相同的指導，但我認為，你的觀點是正確的。

I think there are opportunities for us to exceed our own expectations. Things like scrap and pig iron tariffs are going to have an impact on the market. We have the coal and coke opportunities that we talked about. We're running our mills more full, more efficiently, so all those things could provide tailwinds beyond what we've guided, but we wanted to be conservative and kept the overall guidance for the year flat.

我認為我們有機會超越自己的期望。廢料和生鐵關稅等因素將對市場產生影響。我們擁有我們談到的煤炭和焦炭機會。我們的工廠運作更加充分、更有高效，因此所有這些都可能帶來超出我們預期的順風，但我們希望保持保守，保持全年整體預期持平。

Yeah, fair enough. And then, what happened at the end with Dearborn and Cleveland-Cliffs number six, can you confirm that Dearborn was idle? Any of those there will be great.

是的，很公平。然後，最後迪爾伯恩和克利夫蘭 - 克利夫斯六號發生了什麼，你能確認迪爾伯恩無所事事嗎？那裡的任何一個都會很棒。

Yeah, Cleveland 6 is up and running, and Dearborn one is going down, so we're replacing one with the other. That's pretty much it. There's no change. I'm not sure if I understood your question.

是的，克利夫蘭 6 號線已投入運行，而迪爾伯恩 1 號線即將關閉，因此我們將用一個線替換另一個線。差不多就是這樣了。沒有變化。我不確定我是否理解了你的問題。

Just wanted to confirm that, Lourenco, so very clear. And then if I may, finally. Can you provide any further color on the non-core assets that potentially you could sell?

只是想確認一下，Lourenco，非常清楚。然後如果可以的話，最後。您能否進一步說明可能出售的非核心資產？

Yeah, they're black. Some are blue, some are yellow, that's the color I can give to you.

是的，它們是黑色的。有些是藍色的，有些是黃色的，這就是我能給你的顏色。

Thank you. At this time, I'll turn the floor back to management for closing remarks.

謝謝。現在，我將把發言權交還給管理階層，請他們作最後發言。

Thank you, everyone. I appreciate talking to you. Have a good day.

謝謝大家。我很高興和你談話。祝你有美好的一天。

This will conclude today's conference. You may disconnect your lines at this time. Thank you for your participation. Have a wonderful day.

今天的會議到此結束。現在您可以斷開線路。感謝您的參與。祝您有美好的一天。