During the past week ending March 11, the Chinese pre-painted galvanized iron (PPGI) market has continued to follow a weak trend on the whole. Softenings in PPGI prices have been witnessed in the Boxing and Guangzhou markets, though the PPGI market in Shanghai has remained stable. As of March 11, 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 |
6,750 |
-133 |
1,027 |
-20 |
PPGI |
0.426 mm x 1,000 mm |
CGCC |
7,400 |
-100 |
1,126 |
-15 |
At present, CGCC 0.476 mm x 1,000 mm PPGI is sold in the Shanghai, Guangzhou and Boxing markets at RMB 6,700/mt ($1,020/mt), RMB 7,050/mt ($1,073/mt) and RMB 6,500/mt ($989/mt) respectively. At the same time, CGCC 0.426 mm x 1,000 mm PPGI prices stand at RMB 6,800/mt ($1,035/mt), RMB 7,100/mt ($1,081/mt) and RMB 8,300/mt ($1,263/mt) in the above respective markets. All prices include 17 percent VAT.
The largest decrease has been observed in Guangzhou market, with prices dropping by RMB 200-300/mt ($30-45/mt). The current declining trend in the Guangzhou market has been caused by the slack market activities of the last two weeks.
In the Boxing market, PPGI prices have also fallen, though at a slower pace than in the Guangzhou market. The main reasons for the downtrend are higher inventories and difficulties as regards availability of cash. Most traders are not positive on the prospects for the future market.
In general, increasing inventories and weak demand are the main factors behind the current downtrend seen in China's PPGI market. It is expected that PPGI prices will continue to slide down in the coming week.