[SMM Daily Commentary: Futures Prices Decline Sharply as Steel Mills Initiate the Third Round of Price Reductions]

On the demand side, pessimism in the market continues to intensify due to the sustained decline in the terminal steel market. Coupled with the fact that steel mills have initiated the third round of price reductions today, downstream coke enterprises have become even more cautious in their purchasing, with most online auctions resulting in failed transactions. Overall, coal mine shipments are performing poorly, and the accumulation of inventories in some coal mines is accelerating significantly. Looking ahead, with the accumulation of coal mine inventories and the continuous decline in coke prices, it is expected that coking coal prices will continue to weaken.