During the past week, the Chinese pre-painted galvanized iron (PPGI) market has maintained its stable movement, while the transaction situation has improved compared with the previous week. Accordingly, traders are more optimistic on the prospects for the market in the coming period. As of July 29, 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 |
6,623 |
0 |
1,028 |
0 |
PPGI |
0.426 mm x 1,000 mm |
CGCC |
7,250 |
0 |
1,126 |
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 ($1,009/mt), RMB 6,900/mt ($1,071/mt) and RMB 6,470/mt ($1,005/mt) respectively. At the same time, CGCC 0.426 mm x 1,000 mm PPGI prices stand at RMB 6,600/mt ($1,025/mt), RMB 7,050/mt ($1,095/mt) and RMB 8,100/mt ($1,258/mt) in the above respective markets. All prices include 17 percent VAT ($1 = RMB 6.44).
The past week was the fourth consecutive week in which stable movement was observed in China's PPGI market. Market supplies have been on the short side in the past two weeks. With the approach of the end of July, many traders' inventories are at low levels and some PPGI specifications are out of stock. This contributes to the support of prices. In addition, booking activity has improved in the market and given the firm prices of producers of cold rolled full hard coil, PPGI traders in China hold an optimistic view of the future market. However, the profit margins for PPGI are still slim and currently decent profits can only be made with large volumes.
Overall, given the reduction of market supplies and stable demand, it is thought that China's PPGI market will see a steady rise in the coming week.