SunCoke Energy’s customers: ArcelorMittal, AK Steel, and U.S. Steel



ArcelorMittal: SunCoke’s largest customer

ArcelorMittal (MT) is SunCoke Energy’s (SXC) largest customer. It procures its entire coke supply from Suncoke’s Jewell coke plant in Virginia (720,000 tons) and its Indiana Harbor plant in Indiana (capacity: 1.2 million tons). SunCoke Energy also supplies coke to ArcelorMittal from its Haverhill plant in Ohio. ArcelorMittal also offtakes its entire production (capacity: 1.7 million tons) from SunCoke’s plant in Brazil.

ArcelorMittal (MT) is the largest steel producer in the world. The company produced 91.6 million tons of steel in 2013, 5.8% of the world’s production.  You can read more about ArcelorMittal.

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AK Steel

AK Steel Holding Corporation (AKS) is another major customer of SunCoke Energy. AK Steel procures its entire production from SunCoke’s Middletown plant in Ohio (capacity: 550,000 tons). AK Steel also procures part of its production from SunCoke’s Haverhill plant.

AK Steel (AKS) produced 4.8 million tons of steel in 2013. You can read more about AK Steel.

U.S. Steel Corporation

U.S. Steel Corporation (X) completes the list of SunCoke Energy’s domestic customers. U.S. Steel offtakes its entire production from SunCoke Energy’s Granite City plant in Illinois (capacity: 650,000 tons).

U.S. Steel is the largest American steel producer. The company produced 20.4 million tons of steel in 2013, which accounted for 1.3% of global steel production. You can read more about U.S. Steel.

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VISA Steel

VISA Steel, SunCoke’s joint venture partner in its Indian plant, also procures coke from the company’s Indian plant.

Customer concentration

Just three customers account for nearly all of SunCoke Energy’s entire business, which means SunCoke exhibits a high degree of customer concentration. All these customers are considerably larger than SunCoke Energy. So shouldn’t the customers have more bargaining power?

To answer this question, we’ll look at SunCoke Energy’s (SXC) business model in the next part.


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