During the week ending September 21, pre-painted galvanized iron (PPGI) prices in the Chinese domestic market have slightly moved up, while market activities have been at moderate levels. Average PPGI prices in the Chinese domestic market can be viewed in the SteelOrbis price reports section.
On the back of incentive infrastructural spending plans of the Chinese government, positive expectations regarding market demand, the US's announcement to launch QE3 and the overall uptrend in the global raw material market, Chinese PPGI market has remained firm in the given week. While some traders are still keeping their wait-to-see stance, others have slightly raised their offers.
Traders state that some PPGI orders given by downstream customers have triggered the overall market demand to some extent. However, as the firmness of the future pricing trend is still questionable, traders are not actively booking PPGI from mills, who still seek to hand out their inventories. As a result, mills are still under sales pressure.
In the short term, PPGI prices in the Chinese domestic market are not expected to see significant increases.