Local Chinese PPGI market follows HRC price trend

During the week ending July 5, pre-painted galvanized iron (PPGI) prices have generally trended downwards in the Chinese domestic market. Average PPGI prices in the Chinese market can be viewed in the SteelOrbis price reports section.
 
In the given week, local PPGI prices have decreased on the heels of the continuous declines in domestic HRC prices, while players in the PPGI market have almost lost confidence. After their aggressive increases in prices failed to gain any acceptance from the market, steel mills have come under strong pressure from high inventories. At the same time, demand from downstream sectors has not yet been released. In this context, traders are adopting a cautious approach to the market, maintaining a wait-and-see stance.
 
As regards the future market, PPGI traders are mostly pessimistic amid the shortage of cash. However, they still believe the market will improve in the second half of the year. In the coming week, however, domestic PPGI prices in China are expected to maintain their downward movement.