During the week ending December 2, pre-painted galvanized iron (PPGI) prices in the Chinese domestic market have declined slightly, after the stable price trend of previous weeks.
At present, CGCC 0.476 mm x 1,000 mm PPGI is sold in the Shanghai, Guangzhou and Boxing markets at RMB 6,450/mt ($1,019/mt), RMB 6,800/mt ($1,074/mt) and RMB 6,050/mt ($956/mt) respectively. At the same time, CGCC 0.426 mm x 1,000 mm PPGI prices stand at RMB 6,550/mt ($1,035/mt), RMB 6,900/mt ($1,090/mt) and RMB 7,800/mt ($1,232/mt) in the above respective markets. All prices include 17 percent VAT. Local PPGI prices in China can be viewed in the SteelOrbis price reports section.
While prices are moving downwards, domestic market demand for PPGI has indicated an improvement. At the moment, Chinese traders are still very cautious. According to current market speculation, demand for PPGI in January and February 2012 will be very low. In line with these expectations, traders are eagerly selling off their inventories without seeking to raise prices, as they strive in bring in more orders before the end of the year.
It is expected that PPGI prices in the Chinese domestic market will continue to trend down slightly in the coming week.