During the week ending December 3, pre-painted galvanized iron (PPGI) prices in the Chinese domestic market have remained stable despite the lackluster transaction situation. Thanks to the support of production costs, overall levels of confidence in the market have been maintained. As of December 3, 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 |
6,683 |
0 |
1,004 |
0 |
PPGI |
0.426 mm x 1,000 mm |
CGCC |
7,283 |
0 |
1,094 |
0 |
At present, CGCC 0.476 mm x 1,000 mm PPGI is sold in the Shanghai, Guangzhou and Boxing markets at RMB 6,600/mt ($991/mt), RMB 7,100/mt ($1,066/mt) and RMB 6,350/mt ($953/mt) respectively. At the same time, CGCC 0.426 mm x 1,000 mm prices stand at RMB 6,700/mt ($1,006/mt), RMB 7,150/mt ($1,074/mt) and RMB 8,000/mt ($1,201/mt) in the above respective markets.
With the onset of winter, demand for pre-painted galvanized iron products in most regions of China has slowed down significantly. Meanwhile, the sales prices of the feedstock materials (HDG) used in the production of PPGI have maintained a relatively stable trend, with the HDG mills mostly operating at low capacity rates. Thus, the PPGI prices have also been following a stable price trend. However, the increases observed in domestic hot rolled coil prices have been exerting some pressure on the PPGI market. In this context, the vertically-integrated mills which produce PPGI possess an advantage.
With most PPGI producers incurring losses in recent times, no large decrease is expected in ex-mill prices in the short term. Market participants predict that most traders will be willing to accept orders as long as they can ensure a profit margin of around RMB 10-20/mt ($1-3/mt).
On the whole, the Chinese pre-painted galvanized iron market is expected to maintain its stable trend in the coming week.