Current Status of the Coking Industry in the United States
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This post was last edited by angryant on 2016-7-30 16:58. Currently, the production capacity of the U.S. coke industry is expected to match that of steel production, even though many coke ovens are over 40 years old. From the perspective of its production capacity structure, 60% of the production capacity is directly associated with steel companies, while 40% is distributed among independent coking enterprises. Although the capacity for producing casting coke is truly independent, the capacity for producing metallurgical coke in many of these independent coking enterprises is gradually being integrated through joint ventures with steel companies; for example, AK Steel invested in Sun Coke Company to establish a coking plant. An analysis of the development history of the U.S. coking industry shows that it is largely dependent on the steel industry, which in turn involves many other sectors, including facilities for the comprehensive utilization of renewable energy, machinery and equipment, defense, transportation, infrastructure, and more. It can be said that the steel industry is an important sector for the U.S. economy and its security. American steel contributes $350 billion to the U.S. economy each year, creating 1 million direct and indirect jobs across the country. There are currently 100 factories employing 130,000 people. Moreover, the steel industry leads the United States in terms of resource recycling rates, with a rate of 83.3% in 2009. Since 1990, energy consumption per ton of steel produced in the U.S. steel industry has decreased by 30%, while carbon dioxide emissions have dropped by 35%. The steel industry is an indispensable part of the U.S. economy. The U.S. coking industry emerged alongside the steel industry and is difficult to replace. Entering the new century, the U.S. produced around 90 million tons of crude steel per year, as well as 30 million tons of blast furnace pig iron per year. The demand for coke remained stable, with production and consumption at around 15 million tons per year. Imports of coke were highly volatile, and their share of total U.S. coke consumption changed significantly; these imports helped to balance the domestic market and also supplied some high-quality coke. As economic integration among the United States, Canada, and Mexico advances, coke exports have essentially become a means of resource allocation within the North American region. I. Overview of the U.S. coke market1. The United States has remained the world’s largest coke producer for eighty years. Coke production in the United States began in 1833, giving it a history of 177 years to date. With coke replacing charcoal in American ironmaking blast furnaces for the first time in 1875, its production soared alongside the growth of the U.S. steel industry. The peak output of coke in the U.S. (excluding coke dust) was 68.2971 million tons in 1955, while consumption peaked at 69.0227 million tons in the same year. The amount of coke used in blast furnace iron production also reached a record high of 79.26 million tons that year, and U.S. crude steel production exceeded 100 million tons for the first time, reaching 106 million tons. The U.S. coke industry consumes 2% of the country’s coal supply. From 1890 to 1970, the U.S. led the world in terms of pig iron and coke production for 80 years; from 1970 to 1991, the Soviet Union held the first place for 21 years, and since 1992, China has maintained the top position in global pig iron and coke production for nearly 20 years. From 1965 to 1970, the production and consumption of coke in the United States remained at around 60 million tons each year. After 1970, both production and consumption of coke in the U.S. declined year by year. Over the 60-year period from 1949 to the present, the lowest recorded output of coke in the U.S. was 10.1067 million tons in 2009; in the same year, consumption also hit its lowest level at 9.3603 million tons. These figures represent decreases of 85.21% and 86.44%, respectively, compared to the peak levels recorded in 1955. The decline in coke production and consumption is directly linked to the concurrent drop in pig iron and crude steel output. In 2009, the U.S. produced 19.018 million tons of blast furnace pig iron and 59.196 million tons of crude steel—both figures representing the lowest levels in nearly 60 years. These amounts are 76% and 55.8% lower, respectively, than their respective peaks during the same period. The differing rates of decline between pig iron and crude steel can be attributed to the fact that electric furnace steel production now accounts for 60% of total steel output in the U.S., while converter steel production (which relies on coke and iron ore to produce pig iron and then steel) has dropped to 40%. 2. In 2010, coke production and sales were strong, but profits declined. In 2010, the recovery of the U.S. steel industry led to a revival in the coking industry as well; that year, the United States produced 26.82 million tons of blast furnace pig iron and 80.594 million tons of crude steel, representing year-on-year increases of 41.02% and 38.49%, respectively. Statistics on U.S. coke (excluding coke dust) production, imports, exports, consumption, and steel production (in 10,000 tons)
Year: Production, Imports, Exports, Consumption, Pig Iron Production, Steel Production
2007: 1469.43, 223.12, 130.97, 1566.39, 3633.7, 9810.2
2008: 1419.09, 326.79, 177.68, 1542.44, 3299.2, 9135
2009: 1010.67, 31.47, 118.54, 936.3, 1901.8, 5819.6
2010: 1362.5, 110.11, 132.69, 1346.62, 2682, 8059.4
First quarter of 2011: 336.32, 26.21, 16.42, 351.01, 709, 2124.9
First quarter of 2010: 311.37, 33.11, 25.85, 325.43, 604.2, 1958.9
According to the Energy Department’s quarterly energy report for June 2011, in 2010 the United States produced 1468.25 million tons of total coke (including coke dust), a year-on-year increase of 37.56%. Of this total, 13.6249 million tons were conventional-sized coke (according to U.S. standards: particle size >10mm), and 1.0576 million tons were coke breeze (particle size: 0–10mm). These figures represent year-on-year increases of 34.81% and 86.56%, respectively. In terms of producers, 60% of the output came from steel mills, while 40% was produced by independent coking enterprises ； By variety: 6% cast coke, 94% blast furnace metallurgical coke. By the end of 2010, U.S. coking companies had coke inventories of 775,500 tons, a decrease of 22,700 tons compared to the previous year. Among them, the volume of regular-grained coke was 653,900 tons, while that of coke dust was 101,600 tons; these figures represented a decrease of 49,900 tons and an increase of 27,200 tons respectively on a year-on-year basis. In 2010, domestic sales prices of coke in the United States declined, while sales volume increased. In 2010, total domestic sales of coke with standard particle size in the United States reached 7.5998 million tons, at an average price of $210.63 per ton. These figures represented year-on-year increases of 45.45% and decreases of 31.46%, respectively ； 800,900 tons of coking coal fines were sold at an average price of $54.04 per ton, representing year-on-year increases of 97.12% and a decrease of 0.4%, respectively. In 2010, the U.S. coking industry consumed 19.1304 million tons of coal, a year-on-year increase of 39.95%. For a long time, the consumption of coke in the U.S. industry has accounted for roughly 2% of the country’s total coal consumption. In 2010, the ratio of coal to coke in the U.S. was 1.3:1, remaining at roughly the same level as since 2001. That year, the coking coal used in the U.S. industry had an ash content of 7.94% and a sulfur content of 1.12%; the ash content increased by 0.03 percentage points compared to the previous year, while the sulfur content decreased by 0.01 percentage point. In 2010, the price of coking coal purchased by the U.S. coking industry reached $139.71 per ton, an increase of 0.74% on a year-on-year basis, and a sharp rise of 230.9% compared to 2001. By the end of 2010, the U.S. coking industry had 1.7459 million tons of coking coal in stock, accounting for 9.13% of annual consumption; assuming continuous production throughout the 365 days of the year, the stock of coking coal at the end of the year was equivalent to 33 days’ worth of consumption. Since 2005, the year-end inventory of coking coal in the U.S. coke industry has remained at a level corresponding to 30 to 40 days of consumption. Coal consumption, total coking coal production, and coal-to-coke ratio in the U.S. coke industry
Year Coal consumption (10,000 tons) Total coking coal production (10,000 tons) Coal-to-coke ratio
2007 2060.25 1579.81 1.3
2008 2001.75 1517.5 1.32
2009 1390.07 1067.36 1.3
2010 1913.04 1468.25 1.3
Proportion of coking coal inventory in U.S. coke plants to annual coal consumption
Time Inventory of coal (10,000 tons) Annual coal consumption (10,000 tons) Inventory/Annual consumption (%)
2007-12-31 172.33 2060.25 8.36
2008-12-31 208.61 2001.75 10.42
2009-12-31 177.49 1390.07 12.77
2010-12-31 174.59 1913.04 9.13
Price of coking coal purchased by U.S. coke industries
Year Price (dollars per metric ton)
2007 86.14
2009 129.71
2008 107.11
2010 139.31
In 2010, the U.S. imported 1.1011 million tons of coking coal, at an average import price of $300.85 per ton, representing increases of 248.8% and 23.59% respectively on a year-on-year basis ； In 2010, the United States exported 1.3269 million tons of coke, at an average price of $151.69 per ton (FAS price – that is, delivery at the ship’s side, excluding loading costs), representing increases of 11.94% and 61.65% respectively on a year-on-year basis. In 2010, U.S. coke consumption (production + imports – exports – inventory changes) was 13.4662 million tons, representing a year-on-year increase of 43.82%, which effectively reversed the impact of the financial crises in 2008 and 2009 on the U.S. coke industry. In 2010, the production and sales of coke in the United States were strong, but industry profits declined. The price of coking coal purchased that year increased by 0.74% on a year-on-year basis, a modest rise; meanwhile, the domestic price of coke (including coke dust) was 195.7 dollars per ton, a sharp drop of 32.33% compared to the previous year. Sales volume reached 8.4006 million tons, an increase of 49.71% on a year-on-year basis. The U.S. coking industry stimulated sales by reducing prices in an effort to maintain production levels, increase operational rates, and reduce inventory. In 2010, coke production increased by 37.56% on a year-on-year basis; the capacity utilization rate for coke production was 86.42%, up 22.31 percentage points compared to the previous year, while inventory levels decreased by 2.92%. These goals were largely achieved, but it was inevitable that the profitability of the U.S. coking industry would decline in 2010. 3. In the first quarter of 2011, both the production and consumption of coke increased. In the first quarter of 2011, coke production and domestic consumption in the United States increased, inventories decreased, the quality of coking coal deteriorated, while both imports and exports of coke saw volume declines and price rises. In the first quarter of 2011, the production of total coke in the United States was 3.6026 million tons, representing a year-on-year increase of 7.80%. Of this, 3.3632 million tons of conventional coke and 239,400 tons of coke dust were produced, representing year-on-year increases of 8% and 5%, respectively. In the first quarter, U.S. coke inventory was 663,900 tons, a 12.6% decrease on a year-on-year basis and a 12.14% decline from the end of 2010. In the first quarter, the U.S. coking industry purchased coking coal with an ash content of 9.02% and a sulfur content of 1.17%, representing increases of 1.14 percentage points and 0.06 percentage points respectively on a year-on-year basis. Compared to the fourth quarter of 2010, these values increased by 1.11 percentage points and 0.04 percentage points respectively. In the first quarter of 2011, the United States exported 164,200 tons of coke, with an average export price of $235.33 per ton (FAS price – that is, delivery at the ship’s side, excluding loading costs). Exports volume decreased by 36.6% on a year-on-year basis, while the price increased by 31.7%. In the first quarter, 262,100 tons of imported coke were brought in, with an average customs import price of $327.87 per ton. Import volumes decreased by 21% on a year-on-year basis, while prices rose by 41.6%. In the first quarter, the United States consumed 3.5101 million tons of coke, a 7.86% increase on a year-on-year basis. During the same period, the country produced 7.09 million tons of blast furnace iron and 21.249 million tons of crude steel, with increases of 17.35% and 8.47% respectively; the increase in coke consumption matched the increase in steel production. II. Current Status of Independent Coking Enterprises and Steel Companies in the United States As of July 15, 2011, there were 18 coking plants in the United States that were in operation or would come online by the end of 2011 (1 plant); these plants belonged to 10 companies, including 2 joint ventures. Among them, there were 6 independent coking enterprises with 10 coking plants, boasting a coking production capacity of 6.005 million tons per year. There were also 4 steel companies with 8 coking plants, with a coking production capacity of 9.76 million tons per year. In total, the United States’ coking production capacity amounted to 15.765 million tons, of which steel companies accounted for 62% and independent coking enterprises for 38%. The production capacity for metallurgical coke was 93%, while that for foundry coke was 7%. In 2010, the utilization rate of coke production capacity in the United States was 86.42%, an increase of 22.31 percentage points compared to the previous year. The combined coke production capacity of the four largest domestic coke producers in the United States is 12.95 million tons, accounting for 82.14% of the total U.S. production; the industry concentration rate is over 75%, indicating an oligopolistic structure. By the end of 2011, it is expected that the Middletown Coke Plant in Ohio, built as a joint venture between Sun Coke Company and AK Steel Company, will come online, bringing the United States’ coke production capacity to 16.315 million tons. 1. U.S. Steel has the largest coke production capacity in the United States, with a production capacity of 6.5 million tons per year domestically and 3.9 million tons per year abroad, for a total of 10.4 million tons per year. It is mainly distributed in the following 6 coking plants: US Steel’s Clayton Coking Plant in Pennsylvania, with 12 coke ovens and a designed production capacity of 4.7 million tons per year ； U.S. Steel’s Gary Coke Plant in Indiana, featuring 3 coke ovens, with a designed production capacity of 1.3 million tons per year ； U.S. Steel’s Granite Coking Plant in Illinois, 2 coke ovens, designed capacity of 500,000 tons per year ； A coke oven with 83 ovens (each coking chamber being 5 meters high) put into operation in 1973 by U.S. Steel’s Hamilton Steel subsidiary in Ontario, Canada; its designed production capacity is 700,000 tons per year ； 2 coke ovens at the Lake Erie Steel facility of US Steel in Nanticoke, Ontario, Canada, with a designed production capacity of 1 million tons per year ； The steel subsidiary of US Steel in Košice, Slovakia, has two Russian-style coke ovens; the carbonization chamber of Oven No. 1 is 5 meters high (completed in 1984), while that of Oven No. 2 is 7 meters high (completed in 1986). Ovens No. 1 and No. 2 are designed to produce 2.2 million tons of coke per year. The coke used in this plant is purchased from Poland, Ukraine, and the Czech Republic and transported there by rail. The plant produces 1.87 million tons of coke per year, and it needs to purchase additional coke to meet its demands. In 2000, U.S. Steel’s coke production was 5.19 million tons; in 2004 it was 8.38 million tons, in 2007 it was 7.35 million tons, and in 2008 it was 8.15 million tons. 2. Sun Coke Company is the largest independent producer of commodity coke in the United States, with a production capacity of 3.19 million tons per year domestically and 1.7 million tons per year abroad. A total of 4.89 million tons per year. Mature heat-recovery coke oven technology is also in use, primarily at the following 6 coking plants: the Jewel Coke Plant of Sun Coke Company in Vanceville, Virginia, which began operations in 1962. Currently, 142 of the coke ovens at this plant are heat-recovery type, and the plant is equipped with a coke oven gas power plant; its designed annual production capacity is 720,000 tons of coke ； Sun Coke Company’s coke plant at Indiana Port, East Chicago, Indiana (heat-recovery coke ovens); it came online in 1998, has 268 coke ovens, and its designed production capacity is 1.22 million tons per year ； Sun Coke Company’s Blackfriar Coke Plant in Ohio (heat-recovery coke ovens): The first oven with 100 chambers was put into operation in 2005, and the second oven with 100 chambers was commissioned in 2008; the combined designed production capacity of these two ovens is 1.1 million tons per year ； Sun Coke Company’s Granite Coke Plant in Illinois began operations in 2009, equipped with 120 coke ovens, with a designed production capacity of 650,000 tons per year ； In the second half of 2011, the Midland Coke Plant (heat-recovery coke ovens), jointly built by Sun Coke Company and AK Steel Company in Ohio, came online; it has 100 coke ovens in operation, with a designed production capacity of 550,000 tons per year ； The coke ovens at the Victoria Coke Plant of Solar Carbon Company in Santa Catarina state, Brazil, have 320 ovens; their designed production capacity is 1.7 million tons per year, and they came online in 2007. 3. ArcelorMittal Steel has a coke production capacity of 2.26 million tons per year in the United States, primarily located in Port Burns, Indiana. The plant is equipped with two Cobb-type coke ovens, one with 80 chambers and the other with 82 chambers, with a designed annual coke production capacity of 1.44 million tons. The remaining 820,000 tons of production capacity is distributed across the coke plants of U.S.-based steel companies acquired by ArcelorMittal. 4. Severstal North America is the U.S. subsidiary of Severstal, Russia’s largest steel group. In 2008, it acquired the U.S.-based PBS Coal Company (with an annual production capacity of 4.28 million tons; planned to reach 6.9 million tons by 2014). In 2004, it jointly established a coking plant in Fairmont, West Virginia, together with Wrought Iron Industries, Inc.; the plant’s designed annual capacity is 1 million tons, featuring three coke ovens with a carbonization chamber length of 3 meters each and one coke oven with a 6-meter-long carbonization chamber. Severstal holds a 50% stake in this joint venture and controls 50% of the produced coke, while PBS Coal supplies 50% of the coal required for the plant. 5. DTE Energy Services Company, which was originally a coal trading company; it later acquired two independent coking plants with a combined annual coke production capacity of 750,000 tons. 6. ABC Coke Company, a subsidiary controlled by Drummond Coal Company, is located in Tallahassee, Florida. Established in 1980, it currently has 132 coke ovens, with a designed production capacity of 730,000 tons of foundry coke per year. Over the past 30 years since its operation, the company has accounted for over 50% of the total U.S. production and sales of foundry coke. Its cast coke boasts excellent quality: fixed carbon at 92.5%, ash content at 7%, volatile matter at 0.5%, and sulfur content at 0.6%. Its main users are the automotive industry, construction industry, asbestos industry, and sugar industry. The company is the largest producer of cast coke in the United States; it relies on high-quality coking coal from its parent company, Drummond Coal Company, located in Alabama and Virginia, to ensure stable production. Founded in 1935, Drummond Coal Company began exporting coal in 1970, and by 1995 it owned one of the two major coal mines in Colombia. 7.AK Steel Company: The Midland Coke Plant (heat-recovery coke ovens) in Ohio, established through a joint venture with Sun Coke Company in the second half of 2011, came online; 100 coke ovens are under construction, with an annual production capacity of 550,000 tons. 8. Founded in 1882 and located in Birmingham, Alabama, Walter Coke Company began producing metallurgical coke and foundry coke in 1920. Currently, it has 120 coke ovens, with a designed annual production capacity of 460,000 tons of metallurgical coke. 9. The Erie Coke Company was founded in 1833 in Erie, Pennsylvania. It built its first coke oven in Pennsylvania; the second one was put into operation in 1907, and in 1925 it constructed the world’s largest coke oven at that time, with 37 chambers. Currently, it produces 195,000 tons of cast coke per year, with particle sizes of 113 mm, 90 mm, 61 mm, and 20 mm. 10. The Tonawanda Coke Company is located in Tonawanda, New York. The first coke oven was put into operation in 1917 (and ceased operation in 1972); the second coke oven was operational from 1926 until it stopped working in 1961. In 1962, a new 4-meter coke oven was built on the same site, with an annual production capacity of 180,000 tons of cast coke. This coke has low ash and sulfur content, and its particle sizes are 137 mm, 91 mm, 61 mm, 30 mm, and 7.6 mm. Status of domestic coke ovens at major U.S. coking companies: Company Name, Type, Capacity, Location – ABC Coke Company (part of Drummond Coal Company): Independent coking, 730,000 tons; foundry coke, Tallant, Alabama. Walter Coke Company: Independent coking, 460,000 tons; metallurgical coke, Birmingham, Alabama. Sun Coke Company’s Indiana Port Plant (with heat recovery): Independent coking, 1.22 million tons; metallurgical coke, East Chicago, Indiana. Sun Coke Company’s Granite Coking Plant: Independent coking, 650,000 tons; metallurgical coke, Granite, Illinois. Sun Coke Company’s Black Freer Coking Plant (with heat recovery): Independent coking, 1.1 million tons; metallurgical coke, Black Freer, Ohio. Sun Coke Company’s Jewel Coking Plant (with heat recovery): Independent coking, 720,000 tons; metallurgical coke, Vanceville, Virginia. Sun Coke Company/AK Steel Company’s Middletown Coking Plant (under construction, with heat recovery): Independent coking, 550,000 tons; metallurgical coke, Middletown, Ohio. DTE Energy Company’s Coking Plant: Independent coking, 400,000 tons; metallurgical coke, Ecoss, Michigan. Status of domestic coke ovens at major U.S. coking companies: Company Name, Type, Capacity, Location – DTE Energy Company’s Coking Plant: Independent coking, 350,000 tons; metallurgical coke, Pittsburgh, Pennsylvania. Tonawanda Coke Company: Independent coking, 180,000 tons; foundry coke, Tonawanda, New York. Erie Coke Company: Independent coking, 195,000 tons; foundry coke, Erie, Pennsylvania. U.S. Steel Company’s Coking Plants: Independent coking, 500,000 tons; metallurgical coke, Granite, Illinois. U.S. Steel Company’s Coking Plant: Independent coking, 1.3 million tons; metallurgical coke, Gary, Indiana. U.S. Steel Company’s Coking Plant: Independent coking, 4.7 million tons; metallurgical coke, Clayton, Pennsylvania. ArcelorMittal Steel Company’s Coking Plant: Independent coking, 1.44 million tons; metallurgical coke, Burns Harbor, Indiana. ArcelorMittal Steel Company’s Coking Plant: Independent coking, 500,000 tons; metallurgical coke, Warren, Ohio. ArcelorMittal Steel Company’s Coking Plant: Independent coking, 320,000 tons; metallurgical coke, Monessen, Pennsylvania. Xcel Steel North America: Independent coking, 1 million tons; metallurgical coke, Florence, West Virginia. Data source: American Coke Association and various company websites. III. U.S. coke imports and exports: 1. U.S. coke imports are highly elastic. For nearly 60 years, the United States has had to import coke, with imports ranging from 90,700 tons per year during the period 1955–1965 to 6.2583 million tons in 2004 – a difference of 69 times between these figures. Imports exceeded 1 million tons in 1975, and between 1980 and 1990 they ranged from 500,000 tons to 700,000 tons per year. From 1995 to 2008, imports were between 2 million tons and 3.6 million tons per year. In 2009, imports reached their lowest level in 35 years, at 314,700 tons, marking the largest year-on-year decline in 60 years. By 2010, imports rebounded to 1.1011 million tons, recording the highest year-on-year increase on record over those 60 years. Over the past 20 years, the United States has primarily imported coke from China, Japan, Poland, Ukraine, Russia, Canada, and Colombia. According to statistics from the U.S. Department of Commerce: between 2000 and 2008, the U.S. imported 1 million to 3 million tons of Chinese coke per year, accounting for 34%–65% of its total coke imports. In 2004 alone, imports reached a peak of 3.6757 million tons, representing 58.73% of the country’s total coke imports that year. In terms of import volume, during the first decade of the 21st century, China was the largest source country for U.S. coke imports. However, after the financial crisis and following China’s adjustment of the export tariff on coke to 40%, U.S. imports of Chinese coke declined significantly. In 2009, imports amounted to only 20,200 tons—a sharp decrease of 2.1282 million tons compared to the previous year. This accounted for 6.42% of total U.S. coke imports. The import price was $203.13 per ton, the lowest among all imported coke ； In 2010, 173,100 tons of Chinese coke were imported, accounting for 15.72% of the total U.S. imports. The import price was $398.14 per ton, the highest among all ** countries; this represented a year-on-year increase of 96% ； In 2010, 222,700 tons of Japanese coke were imported at a price of $380.87 per ton, representing a 5.5% increase compared to the previous year. In the same year, the lowest price for Russian coke imported was $79.41 per ton; it is estimated that this referred to mixed coke with a particle size of less than 15 mm. In the first quarter of 2011, no Chinese coke was imported. In 2009, the United States imported the largest amount of coke from Canada, amounting to 164,400 tons in most cases ； In 2010, the largest amount was imported from Japan, at 222,700 tons ； In the first quarter of 2011, the largest volume of imports came from Russia, at 78,900 tons. From 2009 to the first quarter of 2011, Japan, Poland, Ukraine, Russia, Colombia, and Canada became the main sources of coke imported by the United States, with particularly significant increases in imports from Poland, Russia, Ukraine, and Colombia. In the first quarter of 2011, the volume of coke exported by Ukraine and Russia to the United States was equivalent to the total volume exported in 2010. Colombia’s geographical proximity to the United States facilitated increased exports to that country; the amount of coke exported to the U.S. was 60,500 tons in 2004, 376,200 tons in 2008, and 128,900 tons in 2010. Statistics on U.S. coke imports: Countries of origin/Time
2007 2008 2009 2010 1st quarter 2011
China 98.51 214.84 2.02 17.31
Japan 71.73 54.74 4.22 22.27
Poland 6.03 17.02 4.26
Ukraine 4.38 4.31 3.8
Canada 15.95 3.63 16.44 7.18 0.31
Russia 7.12 7.89
Australia Liberia Colombia 17.82 37.62 1.12 12.89 4.42
Egypt 3.98 9.59
Malta Brazil 1.57 1.51 3.55 3.03
Germany 3.15
Venezuela 3.23
India 3.03
Italy 2.78
UK 5.49
Total 223.12 326.79 31.47 110.11 26.21
Price (USD/ton): 176.43 421.85 243.41 300.85 327.87
Over the past 60 years, the proportion of imported coke in total U.S. coke consumption has ranged from 0.13% to 30%. This proportion is quite elastic; from 1995 to 2008, it showed an upward trend. From 1995 to 2003, imported coke accounted for roughly 14% of total U.S. consumption. In 2004, this figure reached a peak of 30.5%. From 2005 to 2008, it remained at around 20%. However, after 2008 there was a sharp drop: in 2009 it fell to 3.36%, and in 2010 it recovered to 8.17%. It is expected that in 2011 this proportion will be around 10%. A rational analysis of U.S. imports of coke reveals that, as an industrial powerhouse with a strong foundation in the coking industry, the United States has sufficient coke production capacity to meet its domestic steel manufacturing needs. Imports serve merely to curb domestic coke prices and balance coke consumption. Therefore, no major coke-producing country can regard the United States as a primary destination for increasing its exports. 2. U.S. coke exports are limited to North America. Over the past 60 years, 1950 and 1960 marked low points for U.S. exports, with exports amounting to 362,800 tons per year during those two years. In 1970, U.S. coke exports reached a 60-year high of 2.2675 million tons; thereafter they dropped to around 1 million tons in 1975, before rising back to nearly 2 million tons in 1980. During the nearly 20 years from 1985 to 2003, exports were below 1 million tons in all years except for 1995 and 2001, when they exceeded 1 million tons. From 2003 to 2010, exports once again exceeded 1 million tons per year. In 2010, the United States exported 1.3269 million tons of coke, at an average price of $151.69 per ton (FAS price – that is, delivery at the ship’s side, excluding loading costs). These figures represented increases of 11.94% and 61.65% respectively compared to the previous year, with the main export destinations being Canada, Mexico, Brazil, and India. In 2010, the highest export price was $238.35 per ton to Algeria, while the lowest was $90.78 per ton to Brazil. In the first quarter of 2011, the United States exported 164,200 tons of coke, at an average export price of $235.33 per ton (FAS price – meaning delivery alongside the ship, excluding loading costs). These figures represented year-on-year decreases of 36.6% and increases of 31.7%, respectively. The main destinations for these exports were Canada, Mexico, and Brazil. In the first quarter of 2011, the highest export price to Brazil was $253.22 per ton, while the lowest price for Mexico was $212.15 per ton. From a market regional perspective, the U.S. coke export market is relatively limited; 50% of its exports go to countries within the North American Free Trade Agreement (NAFTA), namely Canada and Mexico. The main reason for this is that some U.S. steel companies have invested in steel production facilities in Canada and Mexico, and these overseas subsidiaries need coke supplied by the coking plants controlled by the corporate headquarters in the United States. As a result of cross-border supply, the transfer of coke within the group turns into exports. For example, US Steel has an iron and steel plant in Calgary, Alberta, Canada; it also has joint iron and steel subsidiaries in Hamilton, Ontario, with ArcelorMittal holding 50% each of the shares in these subsidiaries, which produce 280,000 tons of steel per year. In San Luis Potosí, Mexico, US Steel has established a joint venture steel company with Mexican company ACERO Prime, with US Steel holding 40% of the shares in this company, which produces 380,000 tons of steel per year. United States coke export statistics: Export destinations/years – 2007, 2008, 2009, 2010, Q1 2011
Canada: 54.4, 27.8, 23.8, 13.6, 12.3
Chile: 0.0
Mexico: 36.2, 85.9, 146.2, 62.3, 54.2
Brazil: 5.5, 12.5, 83.07
Other European countries**: 5.8, 8.5, 64.89
Asia: 12.7; India: 8.0, 41.167
Other African countries**: 11.74, 0.58; Algeria: 5.1, 34.3; South Africa: 6.1, 92.94
Total: 130.97, 177.68, 118.54, 132.69, 16.42
Price (USD/ton): 82.3, 197.45, 93.84, 151.69, 235.33
Notes: 1. Data sources: U.S. Department of Energy, Department of Commerce, International Iron and Steel Institute. 2. Coke consumption = (Production + Imports) – (Exports + Inventory changes)