During the week ending October 21, pre-painted galvanized iron (PPGI) prices in the Chinese domestic market have started to drop down, amid weak buying activity. As of October 21, 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 |
6,617 |
-23 |
1,040 |
-4 |
PPGI |
0.426 mm x 1,000 mm |
CGCC |
7,233 |
0 |
1,137 |
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 ($1,022/mt), RMB 6,900/mt ($1,085/mt) and RMB 6,450/mt ($1,014/mt) respectively. At the same time, CGCC 0.426 mm x 1,000 mm PPGI prices stand at RMB 6,600/mt ($1,038/mt), RMB 7,000/mt ($1,101/mt) and RMB 8,100/mt ($1,274/mt) in the above respective markets. All prices include 17 percent VAT.
As the overall finished steel market in China weakens, levels of optimism among market players have declined. Many traders feel quite helpless in the current context. Meanwhile, most downstream consumers have no choice but to maintain a waiting strategy and delay new purchases. Despite the decreases in price offer levels from traders, no significant improvement has been seen in overall domestic market activity, with purchase activity still remaining generally slow in the PPGI market. At present, offers from traders of PPGI products produced by Baosteel Group are characterized by disorder, while profit margins of traders are limited. Inventories of Baosteel materials in the domestic market are currently at low levels.
In consideration of the big price decreases in the domestic hot and cold rolled coil markets, it is expected that China's PPGI market will follow a soft trend in the coming week.