Coking Coal Futures Slide Amid Steel Mills' Price Cuts, Market Outlook Remains Weak

[SMM Daily Commentary: Futures Market Falls with Volatility, Coking Coal Starts the First Round of Price Cuts]

Today, the coking coal futures market saw weak volatility, with steel mills initiating the first round of price cuts for coke, which exacerbated market pessimism and led to subdued trading activity. On the supply side, production at some coal mines declined due to rainfall, but overall supply remained stable. In terms of demand, downstream coking plants significantly reduced their purchases as steel mills started to cut coke prices, with traders mostly adopting a wait-and-see attitude, and online auctions often ending in failure to reach the bid price. Looking ahead, as the cycle of coke price cuts begins, the operating rates of coking enterprises may decrease further, weakening the demand for coking coal once again. Consequently, coking coal prices are expected to maintain a stable-to-weak trend in the short term.