During the past week China's domestic pre-painted galvanized iron prices continued to decline. For example, the price of CGCC 0.476 mm x 1,000 mm x C material produced by Wuxi NewDaZhong has declined to RMB 5,850/mt, down from RMB 6,050/mt last Friday.
This week PPGI prices in China have remained on their downward trend. Although HR prices have indicated some slight rebound towards the end of the week, market players generally hold the view that the trend in the PPGI market will continue in an overall downward direction. In addition, market inventories have begun to accumulate due to the dull transaction situation and the decreasing price movement. Downstream users are maintaining a wait-and-see approach to the current declining market and are cautious as regards purchasing activity. As for the mills, this week they have also been waiting to see what happens next. Unlike the previous week, no leading mill has this week raised its ex-works prices. Due to the dull sales situation, mills' inventory levels are increasing, while the decreasing market prices have been moving closer to cost levels. However, towards the end of this week, steel futures prices have shown some rebound, which may indicate that spot market prices will enter a phase of fluctuation. Overall, the local Chinese PPGI market is still on a downward course, but the rate of decrease is expected to be reduced and some fluctuations are likely to be seen.
As for the domestic mills, Wuxi Zhongcai Group this week issued its PPGI ex-works prices for September. The producer's price for 0.5 mm CGCC now stands at RMB 6,150/mt ($900/mt), including 17 percent VAT.
Based on the situation observed this week, although local PPGI prices in China have remained on their downward track, it is likely that the decrease movement will be more moderate in the coming week.