Cleveland‑Cliffs Inc. entered into a three‑year extension of its cokemaking agreement with SunCoke Energy Inc., committing to receive 500,000 metric tons of metallurgical coke each year beginning January 1, 2026. The supply will be produced at SunCoke’s Haverhill facility in Franklin Furnace, Ohio, and the contract replaces the existing take‑or‑pay arrangement that had been in place for the past two years.
The extension reinforces Cleveland‑Cliffs’ vertically integrated model by locking in a stable feedstock for its blast furnaces and electric‑arc furnaces. By securing a long‑term supply, the company can better hedge against volatile coke prices, reduce input‑cost uncertainty, and maintain production stability as market conditions fluctuate. The deal also supports Cleveland‑Cliffs’ broader strategy of expanding domestic steel output while exploring new revenue streams such as rare‑earth mineral production.
SunCoke Energy reported Q3 2025 results that beat analyst expectations, with earnings per share of $0.26 versus a consensus of $0.17 and revenue of $487 million against an estimate of $349.3 million. However, the company’s net income fell to $22.2 million from $30.7 million in Q3 2024, and adjusted EBITDA dropped to $59.1 million from $75.3 million. Management attributed the decline to an unfavorable mix of contract and spot coke sales, lower economics from a contract extension at Granite City, and reduced coal‑to‑coke yields, which together eroded profitability despite the revenue beat.
Cleveland‑Cliffs’ own Q3 2025 performance mirrored the broader steel market’s mixed picture. The company posted a GAAP net loss of $234 million and an adjusted net loss of $223 million, missing revenue estimates of $4.9 billion with actual sales of $4.7 billion. Nevertheless, adjusted EBITDA improved sequentially to $143 million from $94 million in Q2 2025, driven by a recovery in demand for automotive‑grade steel and supportive trade‑policy conditions. CEO Lourenco Goncalves highlighted the rebound in the automotive sector as a key factor in the improved operating performance.
The new coke supply agreement dovetails with Cleveland‑Cliffs’ strategy to secure critical inputs while pursuing growth initiatives. By ensuring a reliable source of metallurgical coke, the company can focus on scaling production, managing input costs, and exploring rare‑earth mineral projects that align with national security objectives. CEO Goncalves noted that “locking in this long‑term supply gives us the confidence to invest in capacity expansion and new product lines without the risk of feedstock shortages.”
No specific market‑reaction data were available for the announcement, but the deal is expected to reinforce investor confidence in Cleveland‑Cliffs’ supply‑chain resilience and its ability to navigate commodity‑price volatility.
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