In the past week, the Chinese PPGI market has been mostly stable, though some rises have also been seen. Meanwhile, some increase in optimism has been observed among traders. As of August 5, 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 |
+17 |
1,031 |
+3 |
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 6,520/mt ($1,012/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).
Some players in the Chinese PPGI market have stated that domestic steel giant Baosteel will reduce its PPGI production by approximately 10,000 mt in August and September. Accordingly, domestic PPGI traders tend to be more optimistic than before. However, apart from Baosteel, the prices of other PPGI producers have been stable in the past week.
Currently, offered prices of Baosteel's 0.5 mm PPGI are in the range of RMB 7,750-7,780/mt ($1,203-1,208/mt), while transactions have been concluded at RMB 7,700/mt ($1,195.7/mt).
Due to the limited profit margins allowed by Baosteel's PPGI, in particular for the 0.5 mm specification, traders have tended to raise the prices of materials from Baosteel and the increased price has also been accepted by the market.
Overall, although prices of other domestic PPGI producers have not shown an obvious uptrend, with the increased price of Baosteel and the recovery of market demand, it is thought that China's PPGI market will rise on the whole in the coming week.