Chinese PPGI market remains stable

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 ($1,020/mt), RMB 6,900/mt ($1,083/mt) and RMB 6,520/mt ($1,024/mt) respectively. At the same time, CGCC 0.426 mm x 1,000 mm PPGI prices stand at RMB 6,600/mt ($1,036/mt), RMB 7,050/mt ($1,107/mt) and RMB 8,100/mt ($1,272/mt) in the above respective markets. All prices include 17 percent VAT ($1 = RMB 6.37).

General market transactions are quieter than before due to traders' attitude. The average sales prices of PPGI in the main Chinese cities have been firm in recent weeks. Most traders state that transactions are not so numerous; in particular, deals for Baosteel's PPGI products are on the low side as traders are reluctant to sell. This week, the price of Baosteel's 0.5mm PPGI has not changed from RMB 8,000/mt ($1,255/mt). The high price is due to traders' low inventory caused by Baosteel's reduced production. On the other hand, the quiet demand in the market has meant few deals have been concluded, and so the price of PPGI is not likely to increase in the short term.

Overall, the Chinese PPGI market will keep a stable trend in the short term.