SunCoke Sees Lower 1Q Coke Yield - Analyst Blog
April 05 2013 - 11:30AM
Zacks
SunCoke Energy
Inc. (SXC) stated that it expects first quarter 2013
domestic coke production to be lower than the comparable quarter
last year. First quarter production volume is estimated at 1,051
thousand tons, down 1.6% from 1,068 thousand tons in first quarter
2012.
The year-over-year decrease is due to an extra day of production in
the comparable quarter of 2012, which was a leap year. Lower
production from its Indiana Harbor facility can also contribute to
the decline, which was marginally arrested by higher production at
the Middletown facility.
At the fourth quarter 2012 release, SunCoke Energy projected
domestic coke production of 4.3 million tons in 2013. The first
quarter expected production is more or less in-line with this.
Coke is primarily consumed in the steel industry for manufacture of
steel. Its demand depends to a large extend on the growth and
movement in the steel industry. The economic uncertainty has
impacted the U.S. steel industry, on which we presently have a
negative outlook. Since demand for coke is tied with the demand
from the steel industry, the domestic demand for coke might also
fall.
It appears that SunCoke is presently trying to expand its
international operations, which will strengthen its operation given
the softness in the domestic markets. In Mar 2013, SunCoke entered
into a partnership with Indian steel major, VISA Steel Limited to
initiate a cokemaking program in that country.
SunCoke Energy Inc. is currently has a Zacks Rank # 3 (Hold).
Utilities which are predominantly based on coal for power
generation and hold a favorable Zacks Rank are ALLETE,
Inc., (ALE), Ameren Corporation (AEE) and
Otter Tail Corporation (OTTR). All of these
currently carry a Zacks Rank # 2 (Buy) and warrant a
consideration.
Headquartered in Lisle, Illinois, SunCoke Energy is a producer and
supplier of coke needed for the steel making process. The company
has 1,214 full time employees and a market cap of $1.10
billion.
AMEREN CORP (AEE): Free Stock Analysis Report
ALLETE INC (ALE): Free Stock Analysis Report
OTTER TAIL CORP (OTTR): Free Stock Analysis Report
SUNCOKE ENERGY (SXC): Free Stock Analysis Report
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