Chinese PPGI prices may have hit bottom

Following a couple of weeks of stable movement after the Spring Festival holiday, PPGI prices in the Chinese market began to slide down in the past week. The main reason for the decline was the pressure on funds coming towards the end of the month. At the same time, traders have stated that, although current shipments on the whole are not at high levels, there are decent levels of orders from construction projects and so they do not have too many concerns about the future market. In addition, market prices have generally thought to have hit bottom, and, considering costs and traders' optimism, there appears to be little possibility of a further decline. Nevertheless, it is difficult to foresee market prices recording strong increases in the coming period.