During the week ending January 5, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have edged up slightly, though transaction activity in the domestic market has been at low-to-medium levels. Average PPGI prices in the local Chinese market are presented in the following table.
Offer prices of ex-China PPGI have been heard at $715-750/mt, moving up by $10/mt on the low end, while up by $5/mt on average compared to December 29.
Specification (mm) |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
0.476 x 1,000 |
CGCC |
5,777 |
+7 |
814 |
+1 |
0.426 x 1,000 |
CGCC |
5,837 |
+7 |
822 |
+1 |
13 percent VAT is included in all prices and all prices are ex-warehouse.
During the given week, PPGI prices in the Chinese domestic market have risen slightly amid the high levels of iron ore prices and decreasing capacity utilization rates on the steelmakers’ side. However, demand for PPGI has not seen significant improvement, which will exert a negative impact on prices. More PPGI producers will implement maintenance works in the near future, which will likely bolster prices to a certain degree. It is expected that PPGI prices in the Chinese domestic market will move sideways in the coming week.
As of January 5, HRC futures prices at Shanghai Futures Exchange (SHFE) are standing at RMB 4,079/mt ($574.5/mt), down by RMB 35/mt ($4.9/mt) or decreasing by 0.85 percent from RMB 4,114/mt on December 29, and down 1.71 percent compared to the previous trading day (January 4).
$1 = RMB 7.1029