During the week ending June 25, the Chinese pre-painted galvanized iron (PPGI) market has been trending sideways, while a recovery in market activities has been observed in the second half of the week.
At present, CGCC 0.476 mm x 1,000 mm PPGI is sold in the Shanghai, Guangzhou and Boxing markets at RMB 6,200/mt ($914/mt), RMB 6,500/mt ($959/mt) and RMB 6,220/mt ($917/mt) respectively. At the same time, CGCC 0.426 mm x 1,000 mm prices stand at RMB 6,350/mt ($937/mt), RMB 6,600/mt ($973/mt) and RMB 7,700/mt ($1,121/mt) in these respective markets.
On the inventory side, domestic PPGI processors and small PPGI producers now report low inventories, while the inventories of large producers are higher than normal.
With rumors circulating that the export rebates for cold rolled products and galvanized steels are to be reduced, some market players are now eager to sell off their inventories and are offering discounts for firm orders. Following the continuous downtrend over the past couple of months, domestic mills and traders are pessimistic as regards the prospects for the domestic PPGI market in the future.