In the past week, the sales prices of pre-painted galvanized iron (PPGI) have on the whole remained stable in most regions of China, except in the Guangzhou market where some minor uptrends have been seen. Meanwhile, the market is currently characterized by low inventories and poor demand. As of December 17, 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 |
+17 |
1,008 |
+3 |
PPGI |
0.426 mm x 1,000 mm |
CGCC |
7,300 |
+17 |
1,098 |
+3 |
At present, CGCC 0.476 mm x 1,000 mm PPGI is sold in the Shanghai, Guangzhou and Boxing markets at RMB 6,600/mt ($992/mt), RMB 7,150/mt ($1,075/mt) and RMB 6,350/mt ($955/mt) respectively. At the same time, CGCC 0.426 mm x 1,000 mm prices stand at RMB 6,700/mt ($1,008/mt), RMB 7,200/mt ($1,083/mt) and RMB 8,000/mt ($1,203/mt) in the above respective markets.
In the Guangzhou market, PPGI prices have risen slightly, though consumers have been showing less interest. On the whole, end-user demand is still lackluster, resulting in a heavy burden on the inventory side for some producers. Thus, prices are not expected to increase further.
As the weather gets colder in the eastern region, PPGI demand has slowed down. It is reported that some mills have stopped production recently.
During the period under review, Chinese steel producers Baosteel Group and Wuhan Steel Group announced their January pricing policies. Specifically, Baosteel has raised its offers by RMB 150/mt ($22/mt), while Wuhan Steel has followed suit, lifting its prices by RMB 200/mt ($30/mt). However, it is not certain that these price announcements will have any significant impact on the market. At present, traders are maintaining a wait-and-see strategy.
On the whole, it is expected that China's domestic PPGI market will trend sideways in the coming period.