Just like the other domestic steel product markets, the Chinese pre-painted galvanized iron (PPGI) steel market observed a strong rising trend in the week ending September 10. However, the increased prices have not succeeded in attracting the interest of end-users. Meanwhile, local traders are currently not under pressure from inventories. On September 10, the average PPGI prices in most Chinese regions were as shown as below:
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 |
6,637 |
+150 |
982 |
+22 |
PPGI |
0.426 mm x 1,000 mm |
CGCC |
7,140 |
+137 |
1056 |
+20 |
At present, CGCC 0.476 mm x 1,000 mm PPGI is sold in the Shanghai, Guangzhou and Boxing markets at RMB 6,360/mt ($941/mt), RMB 6,950/mt ($1,028/mt) and RMB 6,600/mt ($976/mt) respectively. At the same time, CGCC 0.426 mm x 1,000 mm prices stand at RMB 6,500/mt ($962/mt), RMB 7,000/mt ($1,036/mt) and RMB 7,920/mt ($1,172/mt) in the above respective markets.
In line with the overall uptrend seen in the Chinese domestic steel market, under the influence of power rationing measures implemented by local governments in China, domestic pre-painted galvanized iron prices have soared up during the week in question. In addition, shortness of supply has also constituted an important reason for the current uptrend in the pre-painted galvanized iron market. However, many insiders think that the current uptrend will gradually slow down due to the lack of any support from the transaction side. In the last few days of the week in question, with the steel futures market showing some softness, the steel spot market has also lost some momentum. Traders are now waiting for the announcements of new price policies by domestic steel mills.
Actual demand in the downstream industry will be the main factor which decides whether the rising trend will continue in the coming period in China's pre-painted galvanized iron market.