The Chinese pre-painted galvanized iron (PPGI) market has generally been stable in the past week amid slack demand, though some slight increases have been observed. The prices of Baosteel's PPGI materials have stayed at high levels, while other mills' prices have mostly remained stable. As of August 26, 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 |
6,640 |
0 |
1,039 |
0 |
PPGI |
0.426 mm x 1,000 mm |
CGCC |
7,250 |
0 |
1,135 |
0 |
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 ($1,017/mt), RMB 6,900/mt ($1,080/mt) and RMB 6,520/mt ($1,020/mt) respectively. At the same time, CGCC 0.426 mm x 1,000 mm PPGI prices stand at RMB 6,600/mt ($1,033/mt), RMB 7,050/mt ($1,103/mt) and RMB 8,100/mt ($1,268/mt) in the above respective markets. All prices include 17 percent VAT ($1 = RMB 6.39).
Domestic market prices of Baosteel's 0.5 mm PPGI have increased to RMB 8,000/mt ($1,251/mt). Due to Baosteel's reduction of output, its supplies are fewer than before. Although transaction activity is also on the low side, supply is still lower than demand. Most traders' inventories are not so high, while traders are generally reluctant to sell and prefer to raise their prices. Market prices of PPGI from Baosteel are expected to increase in the future.
As for other mills, Union Steel has increased its PPGI prices by RMB 100/mt ($15/mt). Other mills' PPGI prices have remained unchanged. It is reported that some downstream users prefer to purchase from joint venture mills such as Guangdong Steel, Yehui Steel and Union Steel rather than from Baosteel considering the cost factor.
Overall, it is thought that the Chinese PPGI market will likely follow an uptrend in the coming period.