During the past week, the Chinese pre-painted galvanized iron (PPGI) market has risen slightly compared with the previous week. However, a wait-and-see stance prevails among market players due to the lack of clarity concerning the future market trend. As of June 10, 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 |
6,717 |
+17 |
1,033 |
+3 |
PPGI |
0.426 mm x 1,000 mm |
CGCC |
7,310 |
+17 |
1,120 |
+3 |
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 ($1,028/mt), RMB 7,000/mt ($1,077/mt) and RMB 6,470/mt ($995/mt) respectively. At the same time, CGCC 0.426 mm x 1,000 mm PPGI prices stand at RMB 6,780/mt ($1,043/mt), RMB 7,050/mt ($1,085/mt) and RMB 8,100/mt ($1,246/mt) in the above respective markets. All prices include 17 percent VAT ($1 = RMB 6.50).
Although the prices of PPGI in the main Chinese markets have observed a slight increase in the past week, the supply and demand situation as well as the mood of market players have not seen any substantial changes.
Regarding the future market, traders have different opinions. Optimists think that the price trend will likely move upwards amid short supply of material, while pessimists are not so positive on the prospects for the future market as the big three miners have lowered their Q3 iron ore prices, which is expected to result in a decrease in steel production costs. The slow season in June and July is also expected to have a negative impact on market demand.
Major domestic steelmaker Baosteel has announced some decreases in its flat steel prices for July delivery, which could possibly exert a downward influence on the market trend. Market players will be watching during the coming week to gauge the impact of Baosteel's new prices.