In July 2024, the price of raw materials for galvanized iron (GI) pipes in China exhibited noticeable fluctuations, providing insights into the market's dynamics and aiding short-term predictions. Here is a detailed analysis of the price trends and a short-term forecast:
Price Fluctuations
From July 1st to July 17th, the price of GI pipe raw materials experienced a slight increase, moving from 3,640 RMB per ton to 3,670 RMB per ton. However, starting from July 18th, the price entered a period of decline, falling steadily and reaching 3,470 RMB per ton by the end of the month.
Short-Term Market Trend Forecast
The short-term forecast indicates that prices will likely continue to decline over the next month, potentially reaching around 3,250 RMB per ton before experiencing a rebound. This projection is based on the expectation that market demand will stabilize, and the supply chain will undergo further optimization, limiting significant price volatility.
Market Demand Changes
Demand within the construction sector is anticipated to rise, fueled by global infrastructure development and modernization projects. The manufacturing sector's expansion is also expected to drive the need for high-quality GI pipes. Furthermore, emerging markets are poised to become crucial drivers of future demand, with increasing construction activities contributing to sustained growth.
This analysis highlights the need for stakeholders to closely monitor market trends and adapt strategies accordingly to maintain a competitive edge in the industry.
