During the week ending October 18, pre-painted galvanized iron (PPGI) prices have decreased significantly in the Chinese domestic market. Average PPGI prices in the Chinese market can be viewed in the SteelOrbis price reports section.
Negative factors such as increased arrivals of PPGI materials in the local market, slack market demand, price cuts by steel producers and sellers’ requirement for cash liquidity have accelerated the downtrend of PPGI prices in Chinese domestic market during the past week. However, as traders reported, since the market prices are currently lower than mills’ offers, there’s little chance for destocking by traders.
Besides the weak market activities, the fierce competition is also hindering price increases. On the export markets, the situation is a little better due to current profit margins, though not high. It’s expected that PPGI prices will continue to fall in the Chinese domestic market in the coming week.