After the continuous downtrend seen in the last couple of weeks, pre-painted galvanized iron (PPGI) prices in the Chinese domestic market have been stable during the past week ending April 1. As of April 1, 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 |
6,723 |
0 |
1,023 |
0 |
PPGI |
0.426 mm x 1,000 mm |
CGCC |
7,367 |
0 |
1,121 |
0 |
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 ($1,012/mt), RMB 7,000/mt ($1,065/mt) and RMB 6,520/mt ($992/mt) respectively. At the same time, CGCC 0.426 mm x 1,000 mm PPGI prices stand at RMB 6,750/mt ($1,027/mt), RMB 7,050/mt ($1,073/mt) and RMB 8,300/mt ($1,263/mt) in the above respective markets. All prices include 17 percent VAT.
While PPGI prices in China have remained unchanged from the previous week, most traders have been destocking their inventories in the past week. Meanwhile, a wait-and-see atmosphere has been prevailing in the downstream industry, as buyers typically tend to place orders when prices are on the rise. The impact of the Chinese government's announcement of its tighter credit policy has dwarfed the impact of new starts of construction projects. As a result, it is thought that market demand will not likely be fully released in the near term. During the week under review, market transactions in the Chinese PPGI market have slowed down, with most deals concluded between traders. As regards the future market, traders have different views as regards the likely price trends.
The recent earthquake in Japan has been attracting the focus of the steel market. Market analysts state that the decrease in demand for raw materials from Japanese steelmakers due to their reduced production will slow the upward movement of iron ore prices. At the same time, the analysts say that Japan will need plenty of steel products for reconstruction, which will help push up international steel prices.
On the whole, the overall pricing trend in the Chinese PPGI market is expected to trend sideways in the coming week, as no great changes in the supply-demand dynamic and in the market mood are anticipated. Nevertheless, traders will watch with interest the new round of price adjustments expected to be announced by domestic mills.