Chinese PPGI prices move on a stable trend

Significant volumes of PPGI supplies have been arriving in the Chinese domestic market lately, especially supplies of PPGI produced by Baosteel. Traders are under increasing pressure due to high inventory levels. In this context, the negotiating margin for Baosteel origin PPGI supplies is expected to increase. PPGI prices in the market are lower than the steel mills' prices. Considering support from costs, there is considered to be limited room for downward movement of PPGI market prices in China. Nevertheless, amid weak transaction activity, the Chinese PPGI market may indicate a softening in the coming week.