Despite the recent downward adjustments for many steel products in China, the local pre-painted galvanized iron (PPGI) market has maintained its uptrend, mainly due to the shortage of supplies in the market. As of August 13, the average PPGI prices 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 |
6,390 |
+67 |
944 |
+10 |
PPGI |
0.426 mm x 1,000 mm |
CGCC |
6,940 |
+57 |
1,025 |
+8 |
At present, CGCC 0.476 mm x 1,000 mm PPGI is sold in the Shanghai, Guangzhou and Boxing markets at RMB 6,250/mt ($923/mt), RMB 6,750/mt ($997/mt) and RMB 6,170/mt ($911/mt) respectively. At the same time, CGCC 0.426 mm x 1,000 mm prices stand at RMB 6,400/mt ($945/mt), RMB 6,800/mt ($1,004/mt) and RMB 7,620/mt ($1,126/mt) in the above respective markets.
Compared with the state-owned producers, private mills are showing a greater ability in supplying various specifications. In addition, these private sector mills are more competitive in price. Meanwhile, there have been fewer arrivals of new supplies in the market in the past week.
More traders are now expecting the end of the current slow season and are looking forward to September, which is a traditionally busy period. Commenting on the recent uptrend in the pre-painted galvanized iron market, most market players have some doubts about the sustainability of this trend and they expect a downward correction some time in the near future.
Like the local HDG market, the domestic pre-painted galvanized iron market is now awaiting the announcement of pricing policies by the mills. It is thought that the domestic PPGI producers will probably make upward adjustments to their prices.