In the past week, the Chinese pre-painted galvanized iron (PPGI) market has moved on a stable trend, while transaction volumes have indicated an improvement. However, many traders continue to remain cautious in the current market situation.
As of November 25, the prices of CGCC 0.476 mm x 1,000 mm PPGI in Shanghai, Tianjin and Lecong are respectively at RMB 6,450/mt ($1,016/mt), RMB 6,900/mt ($1,087/mt) and RMB 6,150/mt ($969/mt). For CGCC 0.426 mm x 1,000 mm PPGI, prices stand at RMB 6,550/mt ($1,031/mt), RMB 7,000/mt ($1,102/mt) and RMB 7,900/mt ($1,244/mt) in the abovementioned cities. All prices include 17 percent VAT ($1 = RMB 6.35).
Local PPGI prices in China can be viewed in the SteelOrbis price reports section.
In the Chinese PPGI market, due to the improvement in the transaction volume in the market, some traders state that they are now under less pressure. Others, however, are still facing pressure and are not optimistic on the prospects for the market. With the arrival of the cold weather, there is less construction activity, while the flow of PPGI supplies from northern China is pushing up inventory levels in the southern China market. In addition, many downstream buyers are purchasing PPGI only in line with their needs. Furthermore, given that mills have reduced their plate prices for December, market players believe that Baosteel will decrease its PPGI prices next month. Accordingly, traders hold the view that it is not yet the right time to increase pieces, despite the recent improvement in transaction volumes.
It is expected that the Chinese PPGI market will remain stable or see a slight downward trend in the coming week.