The overall trend and price fluctuations of PPGI in China in 2025

1. Market Overview: Steady Growth Amid Structural Adjustments

The Chinese pre-painted galvanized iron (PPGI) market is projected to maintain moderate growth in 2025, driven by urbanization, infrastructure development, and rising demand for lightweight, durable materials in construction, automotive, and home appliances. However, the market faces headwinds from overcapacity, trade protectionism, and fluctuating raw material costs.

Key Data Points:

Global Market Size: The global PPGI market reached USD 4.85 billion in 2024 and is expected to grow at a CAGR of 5.1% (2025–2031), driven by emerging markets in Asia, Africa, and Latin America.

China’s Market Share: China remains the largest producer and consumer, accounting for ~28% of the global market in 2024, with a domestic market size of USD 1.35 billion.

Price Trends: Chinese PPGI export prices hit a 5-year low of USD 655/ton in 2025 due to oversupply, despite a 32% YoY volume increase.

2. Supply Dynamics: Overcapacity, Trade Wars, and Regional Shifts

2.1 China’s Dominance and Overcapacity

Production: China remains the largest producer (~55% of global output), but capacity utilization hovers at 50–55% due to overexpansion.

Export Surge: Chinese exports hit 7.8 million tons in 2024, up 22% YoY, but face anti-dumping duties in Vietnam, Brazil, and the EU.

2.2 Trade Policies: Protectionism and Diversification

Tariffs: The U.S. and EU impose additional duties on Chinese steel, pushing exporters to target Southeast Asia, Africa, and the Middle East.

"Belt and Road" Initiative: Chinese firms expand capacity in沿线 countries (e.g., Pakistan, Malaysia) to circumvent trade barriers.

2.3 Regional Production Hubs

India: Emerges as a low-cost alternative, with domestic demand growing at 6–8% annually.

Europe: Focus on niche, high-value products (e.g., automotive-grade coils) amid energy cost pressures.

3. Price Trends: Downward Pressure Amid Volatility

3.1 Raw Material Costs

Steel Prices: Fluctuate due to iron ore supply disruptions (e.g., Brazil’s Vale mine issues) and energy price volatility.

Coatings: Rising costs of zinc and polyester resins squeeze margins, but economies of scale in China offset some impact.

3.2 Export Pricing

Chinese Export Prices: Hit a 5-year low of USD 655/ton in 2025 due to oversupply, despite a 32% YoY volume increase.

Premium Markets: European and Japanese producers maintain higher prices (USD 1,200–1,500/ton) for specialized grades.

3.3 Domestic Price Dynamics

PPI Influence: China’s Producer Price Index (PPI) for steel products declined by 2.9% YoY in August 2025, reflecting overcapacity and weak demand.

Regional Variations:

Coastal Provinces: Higher prices due to export demand (e.g., Guangdong, Jiangsu).

Inand Regions: Lower prices amid oversupply (e.g., Hebei, Shandong).

4. Future Outlook: 2025–2030 Projections

Market Growth: 3–5% CAGR driven by emerging markets and EV demand.