During the past week China's domestic pre-painted galvanized iron prices continued their downward trend. For example, the price of CGCC 0.476 mm x 1,000 mm x C material produced by Wuxi NewDaZhong has now dropped to RMB 4,900/mt, down from RMB 4,950/mt last Friday.
Due to high inventories and weak demand, domestic PPGI prices have continued to decline over the past several weeks. The current transaction situation is not good. Downstream purchasers are maintaining a wait-and-see approach, though demand has seen some improvement with the arrival of warmer weather. Domestic traders still lack confidence in the future market and are starting to get worried as market prices are getting close to the prices at which they purchased their inventories. As for the mills, they are also in wait-and-see mode in the current declining market and do not intend to cut production for the time being.
Based on the situation observed this week, China's domestic PPGI market is still on its downward track due to high inventories and the poor deal situation. Although demand has registered a certain amelioration, the decrease trend seems likely to continue during next week.