While the previous price uptrend in most Chinese steel markets have slowed down or even vanished during the week ending August 20, the local pre-painted galvanized iron (PPGI) market has been performing well. As of August 20, the average PPGI prices in most Chinese regions are shown as below:
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 | 6,467 | +77 | 955 | +11 |
PPGI | 0.426 mm x 1,000 mm | CGCC | 6,990 | +50 | 1,032 | +7 |
At present, CGCC 0.476 mm x 1,000 mm PPGI is sold in the Shanghai, Guangzhou and Boxing markets at RMB 6,300/mt ($931/mt), RMB 6,750/mt ($997/mt) and RMB 6,350/mt ($938/mt) respectively. At the same time, CGCC 0.426 mm x 1,000 mm prices stand at RMB 6,450/mt ($953/mt), RMB 6,800/mt ($1,004/mt) and RMB 7,720/mt ($1,140/mt) in the above respective markets.
During the past week, in the north Chinese market small PPGI producers have been reporting sound profits as the price gap between galvanized steel and PPGI widens. Meanwhile, the order books of these producers are also filling up as their offers are now much more competitive than those of the bigger PPGI producers.
In the eastern Chinese market, demand has been relatively flat with the offers of small PPGI producers at almost the same levels as the offers of the bigger PPGI producers. In the Boxing market, PPGI prices have been trending up continuously despite the fierce competition among local producers.
With few arrivals in the market during the week in question, inventories are gradually shrinking. As regards the future market, it is thought that PPGI prices could possibly decline to some extent.