Over the past two weeks China's domestic pre-painted galvanized iron prices have continued to fall. For example, the price of CGCC 0.476 mm x 1,000 mm x C material produced by Wuxi NewDaZhong has decreased to RMB 5,350/mt, down from RMB 5,600/mt on Friday, September 25.
In the week before China's National Day holiday (which took place on October 1-8), local PPGI prices kept falling as traders were worried inventories would accumulate during the holiday period. In addition, the transaction situation was also negatively affected by the fact that many trading companies went on holiday early. Meanwhile, the declining movement of HR and rebar prices also shook the confidence of traders. With the holiday now over, prices have registered a further decline of about RMB 50/mt - because the transaction situation is still not good and as traders have been maintaining a wait-and-see attitude on the first day back after the holidays. Furthermore, HR prices have also declined on the first day after the holidays, exerting a strong influence on the movement of PPGI prices. However, the good news is that the export situation seems to be improving currently. Many mills and traders have received more inquiries than before, especially for HR. As a result, it is estimated that in late October and early November there will be an obvious increase in the export volume. With this improvement in the HR market, the PPGI market is also likely to experience a positive knock-on effect.
China's PPGI prices are still likely to decline during the next few weeks. However, as demand is getting better, the decrease margin is expected to be limited.