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

Market Overview: Stable Growth Through Structural Changes

In 2025, China pre-painted galvanized iron (PPGI) market is forecasted to continue moderate growth due to urbanization, infrastructure improvements and increased demand for lightweight and durable materials for building, cars and home appliances. Steady state will be the industry: increasing disposable income and good-quality materials. The industry will gradually grow. However, the headwinds on the market are overcapacity, trade protectionism and volatile raw material prices.

Global Market Size:

The global PPGI market size was 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 share of the market:

In 2024, China remains the largest producer and consumer for about 28% of global market volume with a domestic market size of USD 1.35 billion.

Trends in Prices: Chinese PPGI export prices hit a 5-year low of USD 655/ton in 2025 on oversupply despite 32% YoY volume growth.

Sources of Supply: Capacity Overload, Trade War and Region Rebalances

 Productisation: China remains the world’s largest producer (around 55 per cent of the world’s production), yet capacity utilization hovered at 50 - 55 per cent we are now running over capacity. World Push in Exports: Chinese Exports surged to 7.8 million tons in 2024, an increase of 22% on the same date but are also held up by anti-dumping tariffs from Vietnam, Brazil and the EU.

Trade measures: Protectionistic and growth. The U.S. and EU put higher tariffs on steel from China, leading exporters to concentrate on some parts of Southeast Asia, Africa and the Middle East.

 “Belt and Road” Initiative : Chinese companies have increased production numbers in countries (like Pakistan and Malaysia) where they can bypass such trade barriers.

 Regional Production Centres. India – A cheaper option offered in India, domestic market has increased 6–8% each year. Europe: Focus on niche, high-cost products (e.g. automotive-grade coils) against energy cost barriers.

 Raw Material Costs. Steel Prices: Volatile due to iron ore supply disruptions (e.g. issues at a Brazilian mine, Vale), fluctuating energy prices. Coatings: Escalating costs of zinc and polyester resins are squeezing margins, but economies of scale in China ameliorate some of the effect.

 Export Pricing. Exports from China: hit a 5-year low of USD 655/ton in 2025 owing to oversupply, even as exports climbed 32-percent YoY. Premium markets: Even European and Japanese suppliers can offer high prices (USD 1,200–1,500/ton) for specialized grades.

Domestic Price Movements. 3.3.1 Country Price Volatility. In China, changes in wholesale prices reflect the price of intermediate grades going up; this represents the direction of the domestic demand in China.

Impact of PPI: In August 2025, China’s Producer Price Index (PPI) for steel products fell 2.9% YoY because of overcapacity and weak demand.

Regional Variations:

Coastal provinces: Prices added to export demand (Guangdong, Jiangsu). Inland-Based Markets: Demand shortage drove down prices (e.g., Hebei, Shandong).