On the first day back after China's National Day holiday, domestic pre-painted galvanized iron (PPGI) prices have climbed up strongly, though sales volumes are quite low. As of October 8, the average sales prices of PPGI in the main Chinese regions 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 |
6,733 |
+80 |
1,006 |
+12 |
PPGI |
0.426 mm x 1,000 mm |
CGCC |
7,273 |
+100 |
1,087 |
+15 |
At present, CGCC 0.476 mm x 1,000 mm PPGI is sold in the Shanghai, Guangzhou and Boxing markets at RMB 6,500/mt ($972/mt), RMB 7,100/mt ($1,061/mt) and RMB 6,600/mt ($987/mt) respectively. At the same time, CGCC 0.426 mm x 1,000 mm prices stand at RMB 6,600/mt ($987/mt), RMB 7,150/mt ($1,069/mt) and RMB 8,070/mt ($1,206/mt) in the above respective markets.
Although the central government issued further measures to control the domestic real estate market before the holiday which will necessarily impact demand levels in the steel markets (especially the construction steel market), there are also some reasons for optimism: firstly, the government policy aimed at saving energy and reducing emissions will continue to be implemented in the future; secondly, prices in other markets including the gold market have soared up. In this context, many traders are now more optimistic as regards the prospects for the future market.
The big increase seen on the first day after the holiday in China's pre-painted galvanized iron market was mainly triggered by domestic traders. However, whether the rising trend will last over a longer period will depend on the actual demand levels in the market.