Analysis of PPGI Prices in China in 2025

1. Market Overview: Steady Growth Amid Structural Adjustments

The Chinese pre-painted galvanized iron (PPGI) market growth is forecast to keep growing in 2025 with moderate growth due to the urbanization, developing infrastructures and the increasing need for lightweight and reliable materials used in construction, auto, and home appliances. But the market is faced with headwinds from overcapacity, trade protectionism and variable cost of raw materials. Key Data Points:

Global Market Size: The global PPGI market size was USD 4.85 billion in 2024 and is growing at a CAGR of 5.1% (2025–2031), spearheaded by the emerging markets in Asia, Africa and Latin America. China’s Market Share: The biggest producer and consumer: The number one contributor and consumer in the world market (~28%) in 2024, China made up ~28% of the market (with domestic market of USD 1.35 billion). 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
55% of global exports still come from China. However, China is also affected by tariffs from many countries, such as Brazil and the European Union. However, despite this situation, China’s export volume continued to increase. By 2024, China’s export volume had reached 7.8 million tons.

2.2Many countries have imposed tariffs on Chinese steel. Under such circumstances, China, in order to break through trade barriers, initiated the Belt and Road Initiative.

2.3The growth rate of steel production in India has been very fast in recent years, and it has now become an alternative option.

 

3. Price Trends: Downward Pressure Amid Volatility

3.1 Raw Material Costs. Steel Prices: Move in response to iron ore supply disruption (Brazil’s Vale mine problems) and energy price volatility. Coatings: Expensive zinc and polyester resins hit margins, but scale economies in China offset losses.

3.2In 2025, the decline in China’s export prices was due to overcapacity, which also caused the prices to drop to the lowest point in the past five years (655 US dollars per ton), while the prices of Japanese-grade products remained stable (1200 – 1500 US dollars per ton).

3.3 In 2025, the decline in China’s export prices was due to overcapacity, which also caused the prices to drop to the lowest point in the past five years (655 US dollars per ton), while the prices of Japanese-grade products remained stable (1200 – 1500 US dollars per ton).

4. Future Outlook: 2025–2030 Projections

The forecast for the period 2025-2030 indicates that the growth rate (CAGR) could reach approximately 5% due to the demand from markets such as electric vehicles.