Glencore's Steelmaking Coal Output Soars in 2024, But Pricing Lags Benchmark

London, January 30, 2025 – Glencore's steelmaking coal production surged 165% year-on-year in 2024, reaching 19.9 million tonnes (Mt), following its $6.9 billion acquisition of Elk Valley Resources (EVR) in Canada. The deal transformed Glencore into a major player in the premium hard coking coal (PHCC) market, with EVR contributing 12.5 Mt, or 63% of total output.

Despite the production increase, Glencore’s average realized price of $201.5 per tonne was 16% below the PHCC benchmark price of $240.7 per tonne. This suggests a weaker sales mix or market-driven price discounts amid sluggish global steel demand.

Glencore’s production costs improved by 18% to $115.6 per tonne, reflecting efficiencies from EVR’s lower-cost operations. The company now dominates Canadian steelmaking coal exports, supplying key Asian buyers, including Japan and South Korea.

Analysts warn that oversupply from EVR could pressure prices further, particularly if Chinese and Indian steel demand remains soft in Q1 2025. Traders are closely watching Glencore’s pricing strategy and its impact on premium coking coal spreads.