During the past week the Chinese PPGI market has continued to decline. While the transaction volume improved in some areas, activity was weak in most regions. Ex-works prices have started to decline and pessimism generally prevails in the market.
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 | 6,457 | -327 | $947 | -48 |
PPGI | 0.426 mm x 1,000 mm | CGCC | 7,017 | -233 | $1,029 | -34 |
On June 11, CGCC 0.476 mm x 1,000 mm PPGI in the Shanghai, Guangzhou and Boxing markets is priced at RMB 6,450/mt ($946/mt), RMB 6,700/mt ($982/mt) and RMB 6,220/mt ($912/mt) respectively. At the same time, CGCC 0.426 mm x 1,000 mm prices stand respectively at RMB 6,550/mt ($960/mt), RMB 6,800/mt ($997/mt) and RMB 7,700/mt ($1,129mt) in these markets.
China's domestic PPGI market has continued to register a declining trend. Since there are few orders, PPGI producers have reduced their production and have also cut back their purchases of hot dip galvanized. In the coming period, the PPGI market will enter the traditional off-season, and so PPGI demand will weaken further.
In addition, affected by the rumors of a possible cancellation of the export tax rebate and against the backdrop of weakening international market, the situation as regards PPGI exports for July is not as positive as it was previously, with the result that pressure on the domestic market has increased.
The continuing weakness in the Chinese PPGI market has led most traders to adopt a wait-and-see attitude. Currently, most traders do not suffer from the pressure of large inventories. However, with the reduced export volume and fewer local orders, PPGI producers are under considerable pressure at the current time, and risk incurring losses with the production costs of some specifications.