The recent analysis by the U.S. Energy Information Administration (EIA) highlights significant changes in the U.S. coke production and consumption landscape, revealing trends that bear directly on small business owners in related industries. In 2025, the United States produced just 10 million short tons of coke, a staggering 78% decline from 1980, when production was as high as 46 million short tons. This drop raises important questions about the future of steel manufacturing and its implications for small businesses.
Coke, a critical component in steel production, is created from metallurgical coal, which undergoes a complex heating process in coke ovens to remove volatile materials. It serves both as a fuel and a reductant in blast furnaces, a crucial step in creating pig iron, which is later transformed into steel. With the continued shift in steel production methods—especially the rise of electric arc furnaces (EAF)—small businesses in sectors reliant on traditional steel production methods may need to adapt to this changing market.
The landscape of steel manufacturing in the U.S. has shifted dramatically. In the early 1980s, traditional steel mills were dominant, producing a majority of the nation’s steel. By the end of 2025, approximately 70% of U.S. steel production came from EAF mini-mills, drastically changed from just 15% four decades prior. This transition was driven by more economical production techniques and a growing emphasis on reducing greenhouse gas emissions.
The benefits of this transformation offer practical applications for small business owners. For those involved in the recycling sector or supply chain management, the increased use of scrap metal in EAF processes means an expanding market for recycled materials. Additionally, small manufacturers seeking to source steel can find new opportunities through EAFs, which often offer faster production times and lower costs. With major players like U.S. Steel and Cleveland-Cliffs focusing heavily on EAF technology, suppliers and service providers can benefit from aligning with these evolving practices.
However, the decline in traditional coke production poses challenges. The steep decrease in coke production and consumption is primarily attributed to two factors: competition from imports and the evolution of the steel manufacturing process. The strong U.S. dollar in the 1980s made imported steel more attractive, forcing U.S. manufacturers to adapt—leading to a more pronounced reliance on EAF methods. For small businesses that have historically engaged with integrated steel production, this shift could mean losing traditional contracts and needing to pivot toward more innovative and resilient business models.
A significant partnership has emerged to address some of these challenges. Recently, Cleveland-Cliffs signed a three-year contract extension with SunCoke Energy, ensuring the delivery of 500,000 tons of metallurgical coke annually. This agreement illustrates ongoing collaboration within the industry that could stabilize supply chains and provide opportunities for smaller businesses that engage with these major players, whether they are looking to provide support services or materials.
Furthermore, the outlook for metallurgical coal remains important for small businesses involved in coal mining and distribution. The domestic metallurgical coal market remains vital, with most of the coal being consumed for domestic coke production, while some is exported to markets like India, Brazil, and Japan. As coke production continues to decline, small business owners must keep an eye on both domestic policies and international market demands to identify new revenue streams.
As the U.S. steel industry evolves, small business owners must remain agile. They should be ready to pivot their operations toward the practices that are gaining traction—investing in recycling initiatives, exploring new supplier contracts, and adapting to the growing role of electric arc furnaces. Staying informed on trends in steel production and related markets will be critical for small businesses aiming to navigate this shifting landscape successfully.
For further details, you can reference the full report on the EIA’s website here.
