During the week ending January 7, the Chinese pre-painted galvanized iron (PPGI) steel market has been characterized by a minor increase in prices, though demand has been on the lackluster side. As of January 7, 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 |
6,783 |
+17 |
1,023 |
+3 |
PPGI |
0.426 mm x 1,000 mm |
CGCC |
7,450 |
+17 |
1,124 |
+3 |
At present, CGCC 0.476 mm x 1,000 mm PPGI is sold in the Shanghai, Guangzhou and Boxing markets at RMB 6,650/mt ($1,003/mt), RMB 7,350/mt ($1,109/mt) and RMB 6,350/mt ($958/mt) respectively. At the same time, CGCC 0.426 mm x 1,000 mm prices stand at RMB 6,750/mt ($1,018/mt), RMB 7,400/mt ($1,116/mt) and RMB 8,200/mt ($1,237/mt) in the above respective markets.
During the period in question, Jiangsu Province-based Chinese steel producer Shagang Steel Group announced increases in its flat steel prices for early January. Accordingly, the producer's offer levels have been raised by RMB 250/mt ($38/mt), rising to RMB 4,650/mt ($701/mt) ex-mill for 5.5 mm Q235 HRC and to RMB 4,730/mt ($713/mt) ex-mill for 5.5 mm SPHC HRC.
On the first day after the New Year Holiday, sales prices given by domestic traders increased due to higher production costs and the shortage of PPGI supplies. Some private mills have pushed up their quotations by RMB 100-150/mt ($15-23/mt) for PPGI supplies over the past week.
On the demand side, following the recent price hikes, end-users in the Chinese domestic PPGI market have been reluctant to accept the new higher prices. Meanwhile, the stockpiles of supplies in warehouses have increased the concerns of producers. It is thought that PPGI prices will edge back down if no new momentum appears as regards demand. However, for the coming week, PPGI prices in China are likely to maintain their upward movement.