In the past week, the Chinese pre-painted galvanized iron (PPGI) market has mostly remained stable, with the average sales prices of PPGI in the main Chinese cities remaining unchanged. As of August 12, the average sales prices in the main 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).
With major domestic supplier Baosteel planning to suspend its two PPGI production lines for repairs in August and September respectively, PPGI supplies from Baosteel have begun to be in short supply, resulting in upward pressure on prices of Baosteel's PPGI. Although Baosteel's PPGI has increased by RMB 200/mt ($31/mt) at the current time, traders are reluctant to sell Baosteel's PPGI for the time being, as they anticipate a further price increase in line with Baosteel's suspension of production. While the price of 0.5 mm PPGI in the Shanghai market has reached RMB 7,800/mt ($1,220/mt), market players believe that a further increase of RMB 50-100/mt ($7-15/mt) may be seen in the future market.
Apart from the increase for Baosteel's PPGI, the prices of PPGI from other manufacturers have changed little in the past few days due to the fierce competition caused by the growing number of private sector producers.