During the past week, the Chinese pre-painted galvanized iron (PPGI) market has decreased slightly compared with the previous week. Prices have declined obviously in the Guangzhou market, while the Shanghai and Boxing markets are comparatively stable. Traders' weakened confidence has caused them to adopt a wait-and-see stance to market activity. As of June 25, the average sales prices of PPGI in the main Chinese 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 |
6,677 |
-40 |
1,029 |
-6 |
PPGI |
0.426 mm x 1,000 mm |
CGCC |
7,303 |
-7 |
1,125 |
-1 |
At present, CGCC 0.476 mm x 1,000 mm PPGI is sold in the Shanghai, Guangzhou and Boxing markets at RMB 6,680/mt ($1,029/mt), RMB 6,880/mt ($1,060/mt) and RMB 6,470/mt ($997/mt) respectively. At the same time, CGCC 0.426 mm x 1,000 mm PPGI prices stand at RMB 6,780/mt ($1,045/mt), RMB 7,030/mt ($1,083/mt) and RMB 8,100/mt ($1,248/mt) in the above respective markets. All prices include 17 percent VAT ($1 = RMB 6.49).
Due to sluggish demand for construction steel and weakness in the domestic hot rolled coil (HRC) and cold rolled coil (CRC) markets, buyers have little confidence in China's PPGI market. In addition, stockists are not under pressure to book materials as they are not receiving many orders. Meanwhile, given the high costs of raw material, traders' profit margins have gradually declined.
For the coming week, it is thought that China's PPGI market will not see any significant decline.