In H1 2025, affected by the decline in raw material prices such as iron ore and coking coal, the operating performance of the steel industry continued to recover. However, the domestic steel industry still exhibited a "three highs and three lows" pattern of "high production, high costs, high inventory, low demand, low prices, and low profitability," with the overall market in a bottom-grinding phase. Downstream demand remained weak, with supply outpacing demand. Coupled with prices of raw fuels fluctuating at highs, the actual decline in cost centers was smaller than that in steel prices, resulting in steel prices generally in the doldrums. The steel market remained caught in a contradiction between strong expectations and weak reality.