During the past week, the Chinese pre-painted galvanized iron (PPGI) market has seen numerous minor fluctuations especially due to speculation, with the general market trend down slightly compared with the previous week. As of July 9, 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 |
6,623 |
-54 |
1,024 |
-8 |
PPGI |
0.426 mm x 1,000 mm |
CGCC |
7,250 |
-53 |
1,121 |
-8 |
At present, CGCC 0.476 mm x 1,000 mm PPGI is sold in the Shanghai, Guangzhou and Boxing markets at RMB 6,500/mt ($1,005/mt), RMB 6,900/mt ($1,066/mt) and RMB 6,470/mt ($1,000/mt) respectively. At the same time, CGCC 0.426 mm x 1,000 mm PPGI prices stand at RMB 6,600/mt ($1,020/mt), RMB 7,050/mt ($1,090/mt) and RMB 8,100/mt ($1,252/mt) in the above respective markets. All prices include 17 percent VAT ($1 = RMB 6.47).
In China's PPGI market, buyers appear to have little confidence and prefer to maintain a wait-and-see stance. The Chinese central bank's interest rate hike this week has not contributed to boosting confidence levels. Traders report that they have only received few inquiries for PPGI.
While demand for PPGI has continued to be low, many traders have decided to sell off their inventories. Some traders prefer to focus on hot rolled products, given the low demand and reduced profits for PPGI.
Overall, it is thought that China's PPGI market will continue to be characterized by uncertainty, with prices likely to indicate softness in the coming week.