The Steelmakers Who Buy BMA's CoalThin moat
Mitsubishi Corporation (8058) — moat facet
BMA's customers are steelmakers losing ground to Chinese exports, and they buy less at lower prices.
BMA sells steelmaking coal to steel mills, and those mills compete with Chinese steel exports that Mitsubishi describes as a structural factor1. BMA produced 36 million tonnes in calendar 20252.
The customers have become weaker buyers. MDP's net income fell from ¥190.2 billion in the year to March 2024 to ¥8.3 billion in the year to March 202634, and the company assumed coking coal at $200 a tonne for the latest year5.
A steelmaker buys coal on quality and price, and BMA's quality is high. But when steelmakers produce less, they buy less of every grade.
The company's coking coal assumption for the current year is undisclosed6, so there is no published figure for how much it expects its steelmaking customers to pay.
The measure is BMA's sales volume. A fall with prices would say the customers are cutting production.
MDP's profit fell to ¥8.3 billion as its customers' demand weakened.
The customers' weakness in one line; a recovery would mean steel mills buying again.
Source: Mitsubishi Corporation results presentation, May 2026 ↗- ReportedBMA sells steelmaking coal to steel mills, and those mills compete with Chinese steel exports that Mitsubishi describes as a structural factor.Mitsubishi Corporation, FY2025 results and FY2026 forecast presentation (1 May 2026) - the LNG, copper and steelmaking coal portfolios with stakes, capacities and production volumes, data centre capacity, the Thai and Indonesian automotive businesses, and Cermaq's salmon volumes. — FY to March 2026 · publ. 1 May 2026 · source ↗
- ReportedBMA produced 36 million tonnes in calendar 2025.Mitsubishi Corporation, FY2025 results and FY2026 forecast presentation (1 May 2026) - the LNG, copper and steelmaking coal portfolios with stakes, capacities and production volumes, data centre capacity, the Thai and Indonesian automotive businesses, and Cermaq's salmon volumes. — FY to March 2026 · publ. 1 May 2026 · source ↗
- ReportedMDP's net income fell from ¥190.2 billion in the year to March 2024 to ¥8.3 billion in the year to March 2026, and the company assumed coking coal at $200 a tonne for the latest year.Mitsubishi Corporation, FY2024 results presentation - the review of Midterm Corporate Strategy 2024, the Enhance programmes covering all 244 operating companies, capital recycling, and the credit ratings. — FY to March 2025 · publ. 2 May 2025 · source ↗
- ReportedMDP's net income fell from ¥190.2 billion in the year to March 2024 to ¥8.3 billion in the year to March 2026, and the company assumed coking coal at $200 a tonne for the latest year.Mitsubishi Corporation, FY2025 results and FY2026 forecast presentation (1 May 2026) - net income by segment and of major subsidiaries and affiliates, with ownership, and the forecast by segment. — FY to March 2026 · publ. 1 May 2026 · source ↗
- ReportedMDP's net income fell from ¥190.2 billion in the year to March 2024 to ¥8.3 billion in the year to March 2026, and the company assumed coking coal at $200 a tonne for the latest year.Mitsubishi Corporation, FY2025 results and FY2026 forecast presentation (1 May 2026) - net income by segment and of major subsidiaries and affiliates, with ownership, and the forecast by segment. — FY to March 2026 · publ. 1 May 2026 · source ↗
- ReportedThe company's coking coal assumption for the current year is undisclosed, so there is no published figure for how much it expects its steelmaking customers to pay.Mitsubishi Corporation, FY2025 results and FY2026 forecast presentation (1 May 2026) - net income by segment and of major subsidiaries and affiliates, with ownership, and the forecast by segment. — FY to March 2026 · publ. 1 May 2026 · source ↗