The Chinese pre-painted galvanized iron (PPGI) market has continued its stable trend in the past week, while traders are now more optimistic on the prospects for the market in the coming period. As of August 19, the average sales prices of PPGI in the main Chinese cities are as follows:
Product name |
Specification |
Category |
Average price (RMB/mt) |
Price |
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 |
7,250 |
0 |
1,135 |
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 7,050/mt ($1,103/mt) and RMB 8,100/mt ($1,268/mt) in the above respective markets. All prices include 17 percent VAT ($1 = RMB 6.39).
Although prices in the main Chinese PPGI markets have remained unchanged in the past week, with domestic mills in succession issuing higher ex-works prices, it is obvious that traders are now hoping for a rise in market prices. Last week, Baosteel increased most of its flat steel prices for September; its CGCC PPGI (>0.6 mm) price increased by RMB 150/mt ($23/mt), while all its other PPGI prices remained stable. Meanwhile, Guangdong Yehui Steel Co's PPGI price has increased by RMB 100/mt ($15/mt), with Yehui Steel's 0.426 mm PPGI price now at RMB 8,050-8,100/mt ($1,259-1,267/mt). In addition, UnionSteel is expected to issue its new price policy, and it is thought that it may increase its PPGI price by RMB 100/mt ($15/mt).
With the approach of the traditional peak season for PPGI demand in September and October, and also taking into account the price hikes announced by domestic mills, the prospects for the Chinese domestic PPGI market in the coming period appear bright.
China's PPGI market is expected to follow a rising trend in the coming week.