[SMM Daily Commentary: Persistent Losses for Downstream Steel Mills, Coke Initiates Second Round of Price Cuts]

From a fundamental perspective, as the second round of price cuts for downstream coke is imminent, downstream coke enterprises are adopting a cautious approach to procurement, resulting in a subdued market transaction. On the supply side, coal mine production remains stable, leading to relatively loose supply conditions, with some mines experiencing minor inventory accumulation. The fundamentals of coking coal have clearly deteriorated. In the short term, there are expectations of 1-2 more rounds of price cuts for downstream coke, which may subsequently weaken the demand from coke enterprises. Therefore, under the condition of weak demand, the price of coking coal will continue to trend downwards.