During the week ending September 30, prices of pre-painted galvanized iron (PPGI) have remained unchanged in the Chinese domestic market. At present, market activity is slack amid pessimistic market sentiment. As of September 30, 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 |
6,640 |
0 |
1,039 |
0 |
PPGI |
0.426 mm x 1,000 mm |
CGCC |
7,233 |
0 |
1,132 |
0 |
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 ($1,017/mt), RMB 6,900/mt ($1,080/mt) and RMB 6,520/mt ($1,020/mt) respectively. At the same time, CGCC 0.426 mm x 1,000 mm PPGI prices stand at RMB 6,600/mt ($1,033/mt), RMB 7,000/mt ($1,095/mt) and RMB 8,100/mt ($1,268/mt) in the above respective markets. All prices include 17 percent VAT.
Amid the neutral trend of domestic PPGI prices, the overall market is not so lively. On the one hand, with declines in raw material costs, some PPGI processors are offering lower prices. On the other hand, with mills lately giving discounts for actual transactions, deal prices in the market are trending downward. Furthermore, in the given week, some mills have announced reductions of RMB 50-100/mt ($7-15/mt) in offers, but have failed to attract sufficient interest.
Approaching the National Day holiday in China (October 1-7), some traders are not so eager to negotiate for orders at the moment. Thus, some of them have already left the market.
To sum up, due to low downstream demand and insufficient market confidence, the Chinese PPGI market is expected to continue its weak trend in the first week following the holiday.