In the past week, the Chinese pre-painted galvanized iron (PPGI) market has seen increases in certain markets, for example in the Guangzhou market. Average PPGI prices in the main markets in China can be viewed in the SteelOrbis price reports section.
Although April is the traditional high season for sales in the Chinese PPGI market, in its prices announced this week major domestic steel producer Baosteel has kept its PPGI prices unchanged for May delivery. Accordingly, traders believe that the market outlook is not as bright as they thought. In spite of low sales volumes, traders are still trying to push up their prices or at least keep their prices firm.
Given that the previous two price polices issued by Baosteel did not exert a significant influence on the market, some traders think that Baosteel's PPGI prices have lost their reference value. Since the Chinese Spring Festival, domestic PPGI prices have increased by RMB 200/mt ($31/mt). However, the increase cannot be attributed to high transaction volumes, and this is confusing for traders. Most traders in the market are adopting a-wait-and-see stance and are cautious in their purchasing activities.
For the coming week, it is thought that Chinese domestic PPGI prices may increase slightly or will at least maintain their current levels.