US cokemaker SunCoke cuts 2020 output guidance on contract changes

London — US met coke producer SunCoke Energy cut production guidance by 13% to 3.75 million st in 2020, after offering relief for volumes contracted with steel mills.

SunCoke earlier planned domestic met coke production of 4.3 million st for 2020.

In Q2, coke sales fell to 977,000 st, from 1.03 million st in Q2 2019, it said in a August 3 report. SunCoke sold 1.064 million st in domestic operation in Q1, setting up for weaker second half sales.

The company supplies blast furnace coke to ArcelorMittal, US Steel and AK Steel.

The company plans to produce and sell foundry-grade met coke beginning in 2021.

"This alternative product will provide customer diversification and help address current blast furnace coke market dynamics," SunCoke CEO Mike Rippey, said in a statement.

SunCoke operates cokemaking facilities at Jewell, Virginia, Indiana Harbor, Indiana, Granite City, Illinois, and at the Haverhill and Middletown, Ohio plants.