During the past week, the Chinese pre-painted galvanized iron (PPGI) market has dropped down slightly compared with the previous week. As of May 13, 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 |
6,700 |
-7 |
1,028 |
-1 |
PPGI |
0.426 mm x 1,000 mm |
CGCC |
7,293 |
-7 |
1,119 |
-1 |
At present, CGCC 0.476 mm x 1,000 mm PPGI is sold in the Shanghai, Guangzhou and Boxing markets at RMB 6,630/mt ($1,017/mt), RMB 7,000/mt ($1,074/mt) and RMB 6,470/mt ($992/mt) respectively. At the same time, CGCC 0.426 mm x 1,000 mm PPGI prices stand at RMB 6,730/mt ($1,032/mt), RMB 7,050/mt ($1,081/mt) and RMB 8,100/mt ($1,242/mt) in the above respective markets. All prices include 17 percent VAT ($1 = RMB 6.52).
Overall shipments of PPGI in the domestic market are basically at normal levels. Meanwhile, traders are more optimistic given the insufficient inventory levels in the market and the support of costs, but they still find it hard to foresee the future trend of the market with clarity.
As regards demand in the downstream market, orders from the automotive, household appliance and machinery sectors have registered month-on-month decreases. In the coming period, PPGI market prices may go down slightly due to reduced market demand.
In general, in 2011 so far the Chinese PPGI market has varied between stability and slight weakness. For the week ahead, PPGI market prices in China are not expected to change significantly.