Pre-painted galvanized iron (PPGI) prices in the Chinese market have registered an overall increase during the past week. As of November 26, the average sales prices of the product in question 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 |
6,683 |
+50 |
1,005 |
+8 |
PPGI |
0.426 mm x 1,000 mm |
CGCC |
7,283 |
+26 |
1,095 |
+4 |
At present, CGCC 0.476 mm x 1,000 mm PPGI is sold in the Shanghai, Guangzhou and Boxing markets at RMB 6,600/mt ($992/mt), RMB 7,100/mt ($1,068/mt) and RMB 6,350/mt ($955/mt) respectively. At the same time, CGCC 0.426 mm x 1,000 mm prices stand at RMB 6,700/mt ($1,008/mt), RMB 7,150/mt ($1,075/mt) and RMB 8,000/mt ($1,203/mt) in the above respective markets.
Although some traders currently tend to give aggressive offers in order to sell off stocks, bring in cash and avoid possible risks caused by accumulation of inventory towards the end of the year, prices in China's PPGI market have generally maintained their strength.
On the inventory side, in the past week inventories in the main PPGI markets in China have generally remained unchanged. Due to overhauls by many integrated mills, market supplies are a bit on the tight side, with difficulties experienced in obtaining some specifications.
On the whole, strong production costs and the comparatively small pressure (inventory, etc) on market players have both bolstered the prices of PPGI products in China. Coming towards the end of the year, the problem of tight capital supply will to some extent impact the confidence of the market. It is expected that PPGI prices in China will trend sideways in the coming week.