The influence of the uncertainty on the macroeconomic side and in the stock markets has been reflected in the steel markets in China. As of May 14, average PPGI prices 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 |
6,900 |
-83 |
1,012 |
-12 |
PPGI |
0.426 mm x 1,000 mm |
CGCC |
7,450 |
-17 |
1,092 |
-2 |
On May 14, CGCC 0.476 mm x 1,000 mm PPGI was sold in the Shanghai, Guangzhou and Boxing markets at RMB 6,650/mt ($975/mt), RMB 7,500/mt ($1,100/mt) and RMB 6,550/mt ($960/mt) respectively. At the same time, CGCC 0.426 mm x 1,000 mm prices stood respectively at RMB 6,700/mt ($990/mt), RMB 7,600/mt ($1,114/mt) and RMB 8,050/mt ($1,180/mt) in these respective markets.
During the week in question, the Chinese PPGI market has been mainly characterized by an overall downtrend, with some dealers even offering at levels RMB 100/mt ($15/mt) lower than the market price. Trading activities have also shown a weak performance.
In addition, major domestic steel producers Baosteel and WISCO have announced unchanged prices for June during the past week, increasing the uncertainty in the market to a certain extent. Market players both in the downsteam and upstream industries are now all increasingly cautious and more inclined to adopt wait-and-see strategies. As a result, few transactions have been seen in the market.
Although the Chinese domestic PPGI market has started to decline as regards the prices, the average decrease has been small. For this reason, current PPGI prices are much higher than HDG prices in the market. It is expected that more decreases will be seen in the PPGI market in the coming period. In addition, the PPGI market will enter the traditionally slow season after June, which will necessarily lead to a further softening of market demand.