Chinese PPGI market rises in Boxing, still stable in Shanghai and Guangzhou

Different price trends have been observed in the pre-painted galvanized iron (PPGI) market in China depending on regions during the week ending January 21. In the Boxing market, PPGI prices have seen an increase in comparison with a week ago, while in the Shanghai and Guangzhou markets PPGI prices have remained unchanged over the past couple of weeks. As of January 21, the average sales prices of PPGI in the main Chinese cities are as follows:

At present, CGCC 0.476 mm x 1,000 mm PPGI is sold in the Shanghai, Guangzhou and Boxing markets at RMB 6,650/mt ($1,011/mt), RMB 7,350/mt ($1,117/mt) and RMB 6,500/mt ($988/mt) respectively. At the same time, CGCC 0.426 mm x 1,000 mm PPGI prices stand at RMB 6,750/mt ($1,026/mt), RMB 7,400/mt ($1,125/mt) and RMB 8,300/mt ($1,261/mt) in the above respective markets. All prices include 17 percent VAT.

PPGI trading slows down in Boxing due to high inventories

In the Boxing market, market activities have slowed down in the past week due to the high inventory levels in the region. Despite the weak demand, PPGI prices have indicated an increase and traders are still positive, pointing out that some bookings have been heard from customers who need to restock PPGI materials ahead of the holiday. Most local traders anticipate a recovery of prices in the post-holiday period. It is expected that local PPGI prices in Boxing will continue to remain strong in the coming period.

Lackluster demand and stable prices in Shanghai and Guangzhou PPGI markets

In the Shanghai and Guangzhou markets, market demand has been lackluster, as in the Boxing market, though prices have maintained a stable trend instead of indicating increases. Furthermore, traders in the Guangzhou market have been withdrawing from the market as the holiday approaches.

As predicted by market sources, no big change is expected to be seen in China's PPGI market in the coming week.