During the past week ended on November 19, pre-painted galvanized iron (PPGI) prices have remained stable in most regions of China, with an uptrend observed in Guangzhou market. As of November 19, average sales prices of the product in question 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 |
6,633 |
+16 |
999 |
+2 |
PPGI |
0.426 mm x 1,000 mm |
CGCC |
7,257 |
+17 |
1,093 |
+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 ($994/mt), RMB 6,950/mt ($1,047/mt) and RMB 6,350/mt ($956/mt) respectively. At the same time, CGCC 0.426 mm x 1,000 mm prices stand at RMB 6,700/mt ($1,009/mt), RMB 7,000/mt ($1,054/mt) and RMB 8,070/mt ($1,215/mt) in the above respective markets.
Despite the decreases of the prices of construction steels, HRC and CRC, PPGI prices have not yet follow suit, whereas the actual sales volumes have fallen down from last week. The fewer new arrivals as well as the rising gas and paint costs have both underpinned the strength of the PPGI market.
On November 18, Chinese steel producer Wuhan Iron and Steel Co. Ltd. (WISCO) announced that it has reduced the PPGI price by RMB 200/mt ($30/mt), while another steelmaker Anshan Steel's PPGI list price was down RMB 100/mt ($15/mt). The moves demonstrate the producers' lack of confidence towards the market in December. Given the uncertainties in the market, some traders are now more eager to sell out their stocks.
As the weather getting colder, demand for PPGI products has gradually shrunk. It's thought that it's difficult for further increases in PPGI prices in the coming week, which would more likely be on a sideway trend.