During the past week ending April 22, pre-painted galvanized iron (PPGI) prices in the Chinese domestic market have trended down slightly on the back of lackluster activity. Most market players are not optimistic on the prospects for the market in the coming period. As of April 22, 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 |
6,690 |
-33 |
1,023 |
-5 |
PPGI |
0.426 mm x 1,000 mm |
CGCC |
7,333 |
-34 |
1,121 |
-5 |
At present, CGCC 0.476 mm x 1,000 mm PPGI is sold in the Shanghai, Guangzhou and Boxing markets at RMB 6,650/mt ($1,017/mt), RMB 7,000/mt ($1,070/mt) and RMB 6,420/mt ($982/mt) respectively. At the same time, CGCC 0.426 mm x 1,000 mm PPGI prices stand at RMB 6,750/mt ($1,032/mt), RMB 7,050/mt ($1,078/mt) and RMB 8,200/mt ($1,254/mt) in the above respective markets. All prices include 17 percent VAT.
Following the continuous flat trend seen in the last three weeks, the Chinese PPGI market still lacks enough momentum to move upward. Due to the fluctuations of the domestic futures market, the likely future price trend is still unclear. Traders report that there have been few inquiries from buyers in the past week, with a wait-and-see atmosphere prevailing in the market.
On April 18, Chinese steel producer Shougang Steel Group announced a reduction of RMB 150/mt ($22/mt) in its galvanized steel coil price for May. As a result, Shougang Steel's ex-mill price of St01Z 1.0 mm galvanized steel coil stands at RMB 5,110/mt ($781/mt), exclusive of 17 percent VAT.
Summing up, most Chinese traders are still concerned about the state of demand for PPGI. While some traders are holding their prices steady, others are destocking their products. It is thought that PPGI prices in China will not register any big changes in the coming week.