During the week ending July 22, pre-painted galvanized iron (PPGI) quotations in the Chinese domestic market have indicated various trends in different cities, with prices rising in Boxing, declining in Guangzhou, while remaining stable in Shanghai, though overall average prices in China have softened compared to the previous week, while transaction activity in the domestic market has been at low levels. Average PPGI prices in the local Chinese market are presented in the table below.
During the given week, major Chinese steelmakers Ansteel and Hebei Steel Group have issued their ex-works prices for August delivery, keeping their PPGI prices stable, showing their cautious attitude as regards the future prospects for the market. Currently, demand is slack amid the traditional hot summer offseason, exerting a negative impact on PPGI prices. Meanwhile, the sharp declines in ferrous metal futures prices and the decreases in hot rolled coil (HRC) and cold rolled coil (CRC) prices in the given week have negatively influenced sentiment among market players in the PPGI market. It is thought that PPGI prices in the Chinese domestic market will likely indicate a declining trend in the coming week, though with limited decrease margins.
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 | 5,800 | 870 | ↔0 |
Guangzhou | Huamei | 4,900 | 735 | ↓100 | |||
Boxing | Guanzhou | 4,030 | 604 | ↑30 | |||
Average | - | 4,910 | 736 | ↓23 | |||
Thin color coated coils | 0.426 mm x 1,000 x C | CGCC | Shanghai | NewDaZhong | 5,950 | 892 | ↔0 |
Guangzhou | Huamei | 5,000 | 750 | ↓150 | |||
Average | - | 5,287 | 793 | ↓58 |
17 percent VAT is included in all prices and all prices are ex-warehouse.
$1 = RMB 6. 67