During the week ending October 22, the Chinese pre-painted galvanized iron (PPGI) market has continued to trend downwards. Overall sales activities have been lackluster as buyers do not want to make new purchases at the moment. As of October 22, the average sales prices of PPGI in the main Chinese regions 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 |
6,617 |
-33 |
992 |
5 |
PPGI |
0.426 mm x 1,000 mm |
CGCC |
7,240 |
- |
1,085 |
- |
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 ($975/mt), RMB 7,000/mt ($1,049/mt) and RMB 6,350/mt ($952/mt) respectively. At the same time, CGCC 0.426 mm x 1,000 mm prices stand at RMB 6,600/mt ($990/mt), RMB 7,050/mt ($1,057/mt) and RMB 8,070/mt ($1,210/mt) in the above respective markets.
On October 20, the Chinese central bank raised the benchmark interest rate by 0.25 of a percentage point to 2.50 percent. In this context, market quotations for pre-painted galvanized iron have fallen down significantly, especially in the Boxing market. In the export market, given the continuous appreciation of the Chinese currency, few deals have been concluded recently. Faced with the sluggish situation both in the domestic and export markets, traders have not been inclined to replenish their inventories. On the other hand, end-users are mostly following a wait-and-see strategy and are placing orders only to meet essential requirements.
Considering that demand could take a turn for the worse in November, PPGI prices are not expected to improve in the near future. In addition, under pressure to repay loans, traders are generally pessimistic on the prospects for the future market. It is expected that prices will continue to fluctuate downward in the coming week.