With HDG prices sliding down continuously in the Chinese domestic market, the local PPGI market has shown a further softening during the week ending May 28. Influenced by the decreases in mills' offers, market prices have also followed a downward track. In some parts of China, buying activity levels have been poor. As of May 28, average PPGI prices in China's main cities are as follows:
Product name | Specification | Category | Average price (RMB/mt) | Weekly change (RMB/mt) | Price ($/mt) | Weekly change ($/mt) |
PPGI | 0.476 mm x 1,000 mm | CGCC | 6,783 | -83 | 995 | -12 |
PPGI | 0.426 mm x 1,000 mm | CGCC | 7,250 | -133 | 1,063 | -20 |
On May 28, CGCC 0.476 mm x 1,000 mm PPGI was sold in the Shanghai, Guangzhou and Boxing markets at RMB 6,600/mt ($968/mt), RMB 7,300/mt ($1,070/mt) and RMB 6,450/mt ($946/mt) respectively. At the same time, CGCC 0.426 mm x 1,000 mm prices stood at RMB 6,550/mt ($960/mt), RMB 7,400/mt ($1,085/mt) and RMB 7,800/mt ($1,144/mt) in these respective markets.
Even though some mills have started to offer discounts to order to attract customers, the end-user market has continued to be characterized by flagging demand. In the southern areas of China, many construction projects have been delayed due to the lingering rainstorms in these regions. Nevertheless, the recent price rebounds seen in the Chinese hot rolled market have to some extent bolstered the confidence of market players. As a result, in the coming period local sales prices of PPGI are expected to see smaller decreases than those which may have previously been anticipated.
As regards the recent rumor of a possible decrease in the export rebate, the Chinese authorities have stated that the news was just a rumor with no foundation in reality. Notwithstanding, some domestic producers who are worried about uncertainties in official Chinese economic policy are aiming to complete the delivery of their export orders before July.