Bearish sentiment in Chinese domestic PPGI market

During the week ending June 3, pre-painted galvanized iron (PPGI) quotations in the Chinese domestic market have decreased, while transaction activity has been at low levels. Average PPGI prices in the local Chinese market are presented in the following table. 

During the given week, local Chinese PPGI prices have moved on a downward trend, while transaction activities have slackened. During the month of May, the ongoing sharp declines in PPGI prices contributed to poor transaction activity. Currently, inventory levels of PPGI in the market are on the low side, while sentiment among market players is bearish. Meanwhile, rainy weather continues to prevail in many areas in China, and this has further weakened demand for PPGI. It is thought that PPGI prices in the Chinese domestic market will likely move down further in the coming week, also as more supplies are expected to arrive in the market. 

Product name	Spec.	Category	City	Steel plant/origin	Price (RMB/mt)	Price ($/mt)	Weekly change (RMB/mt)
Thick color coated coils	0.476 mm x 1,000 x C	CGCC	Shanghai	NewDaZhong	5,900	897	↓100
			Guangzhou	Huamei	4,720	717	↓200
			Boxing	Guanzhou	4,100	623	↓70
			Average	-	4,907	746	↓123
Thin color coated coils	0.426 mm x 1,000 x C	CGCC	Shanghai	NewDaZhong	5,950	904	↓50
			Guangzhou	Huamei	4,870	740	↓200
			Average	-	5,410	822	↓125

17 percent VAT is included in all prices and all prices are ex-warehouse.

 

$1 = RMB 6.58