SunCoke Faces Tighter Coke Supply in 2026 After Facility Closure and Algoma Breach

The company's coke footprint and margins are shifting as it navigates contract changes and market softness.

Published on Feb. 21, 2026

Got story updates? Submit your updates here. ›

SunCoke Energy is heading into 2026 with a smaller coke production footprint, firmer margins, and a fully sold-out book. This unusual combination underscores how contract shifts, market softness, and a major customer breach have reshaped the company's supply position. The company reported a full-year 2025 net loss of $44.2 million, driven largely by one-time charges including the permanent shutdown of its Haverhill I facility. Domestic coke sales fell as the Algoma Steel breach of contract forced SunCoke to redirect volumes into the spot and foundry markets.

Why it matters

The changes at SunCoke highlight the volatility and challenges facing the coke production industry, which is a critical input for steel manufacturing. The shutdown of the Haverhill I facility and the Algoma Steel contract breach have significantly impacted SunCoke's supply and financial performance, underscoring the need for coke producers to carefully manage their operations and customer relationships.

The details

SunCoke's domestic coke sales fell to 3.67 million tons in 2025, down 360,000 tons year-over-year, as the Algoma Steel breach of contract forced the company to redirect volumes into the spot and foundry markets. The shutdown of the Haverhill I facility reduced SunCoke's blast-furnace-equivalent capacity to 3.7 million tons, with 2025 sales expected at around 3.4 million tons once foundry coke conversion is factored in. The company cited lower pricing, a heavier mix of spot and foundry coke, and lower coal-to-coke yields as factors contributing to its $44.2 million net loss for the year.

  • SunCoke reported a full-year 2025 net loss of $44.2 million.
  • The company permanently shut down its Haverhill I facility in 2025.
  • SunCoke's domestic coke sales fell to 3.67 million tons in 2025, down 360,000 tons year-over-year.
  • The Algoma Steel breach of contract forced SunCoke to redirect volumes into the spot and foundry markets in 2025.
  • SunCoke extended its Granite City contract with U.S. Steel through December 2026 and its Haverhill II contract with Cleveland-Cliffs through 2028.

The players

SunCoke Energy

A Lisle, Illinois-based coke producer.

Katherine Gates

The CEO of SunCoke Energy.

Algoma Steel

A major customer that breached its contract with SunCoke.

U.S. Steel

A company that extended its Granite City contract with SunCoke through December 2026.

Cleveland-Cliffs

A company that extended its Haverhill II contract with SunCoke through 2028.

Got photos? Submit your photos here. ›

What they’re saying

“We have optimized our coke fleet with the closure of Haverhill I… and will be running at full utilization and are sold out for the year.”

— Katherine Gates, CEO (Earnings call)

“It's a clear breach of contract and the breach continued into 2026.”

— Katherine Gates, CEO (Earnings call)

What’s next

SunCoke is pursuing arbitration to recover losses arising from Algoma's refusal to accept contracted volumes.

The takeaway

The changes at SunCoke highlight the volatility and challenges facing the coke production industry, which is a critical input for steel manufacturing. The company's reduced coke footprint and contract shifts underscore the need for coke producers to carefully manage their operations and customer relationships to navigate market fluctuations.