During the past week, the Chinese pre-painted galvanized iron (PPGI) market has continued to maintain its stable trend, while the market transaction volume has increased compared with the previous week. As of May 27, 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 |
6,700 |
0 |
1,029 |
0 |
PPGI |
0.426 mm x 1,000 mm |
CGCC |
7,293 |
0 |
1,120 |
0 |
At present, CGCC 0.476 mm x 1,000 mm PPGI is sold in the Shanghai, Guangzhou and Boxing markets at RMB 6,630/mt ($1,018/mt), RMB 7,000/mt ($1,075/mt) and RMB 6,470/mt ($994/mt) respectively. At the same time, CGCC 0.426 mm x 1,000 mm PPGI prices stand at RMB 6,730/mt ($1,034/mt), RMB 7,050/mt ($1,083/mt) and RMB 8,100/mt ($1,244/mt) in the above respective markets. All prices include 17 percent VAT ($1 = RMB 6.51).
In the past week, the Chinese PPGI market has continued its stable trend. The market transaction situation has been tepid, though there has been a greater number of transactions as compared with the previous week. Some mills which had suspended operations at production lines in the previous week due to a shortage of orders have resumed their production operations in the past week.
According to industrial insiders, some domestic producers of cold rolled full hard products and hot dip galvanized products are hardly able to make a profit at the current time. As a result, costs still provide support for the Chinese PPGI market.
Although the power rationing policy has had an influence on the recent market, most traders consider that demand is still more important as regards determining the market price trend.
For the coming week, due to sluggish demand, the pressure on mills from their inventories may increase, and so the Chinese PPGI market may decrease slightly.