During the week ending February 18, prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market continued to, rise, but at a faster pace than in the previous week. However, few transactions have been concluded at the higher price levels. As of February 18, 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 |
6,917 |
+67 |
1,053 |
+10 |
PPGI |
0.426 mm x 1,000 mm |
CGCC |
7,533 |
+50 |
1,147 |
+8 |
At present, CGCC 0.476 mm x 1,000 mm PPGI is sold in the Shanghai, Guangzhou and Boxing markets at RMB 6,800/mt ($1,035/mt), RMB 7,350/mt ($1,119/mt) and RMB 6,600/mt ($1,005/mt) respectively. At the same time, CGCC 0.426 mm x 1,000 mm PPGI prices stand at RMB 6,900/mt ($1,050/mt), RMB 7,400/mt ($1,126/mt) and RMB 8,300/mt ($1,263/mt) in the above respective markets. All prices include 17 percent VAT.
Compared with the other finished steel product markets in China, the domestic PPGI market has been relatively quiet after the Chinese New Year holiday. In the past week, on the back of rising steel coil prices, PPGI prices again indicated an uptrend but with a stronger increase than in the previous week. However, with no improvement in demand, market insiders expect there will be limited room for price increases in the coming period.
During the past week, major domestic steelmakers Baosteel and WISCO both raised their PPGI prices for March delivery, by RMB 200/mt ($30/mt) and RMB 400/mt ($60/mt) respectively. The future price trend in the Chinese PPGI market mainly depends on market demand and confidence levels among buyers.
In light of the prudent purchase strategy adopted by buyers, PPGI prices in China are expected to trend sideways in the coming week.