During the past week, sales prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have followed a stable trend, with low market activity. As of April 8, 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 |
6,723 |
0 |
1,020 |
0 |
PPGI |
0.426 mm x 1,000 mm |
CGCC |
7,367 |
0 |
1,118 |
0 |
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 ($1,009/mt), RMB 7,000/mt ($1,062/mt) and RMB 6,520/mt ($989/mt) respectively. At the same time, CGCC 0.426 mm x 1,000 mm PPGI prices stand at RMB 6,750/mt ($1,024/mt), RMB 7,050/mt ($1,070/mt) and RMB 8,300/mt ($1,259/mt) in the above respective markets. All prices include 17 percent VAT.
During the week in question, no big change has taken place in the supply-demand dynamics in China's PPGI market. The new price adjustments which the large domestic steel producers are expected to make will have a definite impact on confidence levels in the market. On April 7, major Chinese steel producer Baosteel Group announced cuts of RMB 200-300/mt ($30-46/mt) in ex-mill prices of its main flat steel products.
Meanwhile, the Chinese central bank has again raised the benchmark interest rate, by 0.25 percentage points, as many traders had anticipated. This is expected to exert strong pressure on traders' cash flow.
As regards the prospects for the market, most traders hold the view that market demand will likely improve in the future. The impending price adjustments by major producers will be decisive. Some traders are still choosing to be prudent. For the coming week, it is expected that the domestic PPGI market will trend sideways.