During the past week, the Chinese pre-painted galvanized iron (PPGI) market has indicated stable price movement. However, a wait-and-see mood prevails in the market as buyers appear to have little confidence in the future. As of July 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 |
6,677 |
0 |
1,029 |
0 |
PPGI |
0.426 mm x 1,000 mm |
CGCC |
7,303 |
0 |
1,125 |
0 |
At present, CGCC 0.476 mm x 1,000 mm PPGI is sold in the Shanghai, Guangzhou and Boxing markets at RMB 6,680/mt ($1,029/mt), RMB 6,880/mt ($1,060/mt) and RMB 6,470/mt ($997/mt) respectively. At the same time, CGCC 0.426 mm x 1,000 mm PPGI prices stand at RMB 6,780/mt ($1,045/mt), RMB 7,030/mt ($1,083/mt) and RMB 8,100/mt ($1,248/mt) in the above respective markets. All prices include 17 percent VAT ($1 = RMB 6.49).
After prices decreased in the previous week, the prices of PPGI in the main Chinese markets began to be stable in the past week. However, confidence is not high among buyers. Demand in China's PPGI market is sluggish on the whole. Most traders have been delivering just 100 mt on a daily basis, and so the shipment situation is unsatisfactory. On the other hand, a shortage of funds in the market has also slowed down activity.
China Iron and Steel Association (CISA) has estimated daily crude steel production in China in mid-June at 1.9554 million mt, down 0.67 percent month on month. Accordingly, the pressure from steel supply has been relieved to some degree, though it still exists due to the weak demand in the market.
For the coming week, it is thought that China's PPGI market will continue to see stable movement.