During the week ending October 25, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have edged down, while 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 in the range of $610-640/mt, edging down by $10/mt on average compared to October 18.
Specification (mm) |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
0.476 x 1,000 |
CGCC |
5,077 |
-7 |
714 |
-1 |
0.426 x 1,000 |
CGCC |
5,237 |
-7 |
737 |
-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 edged down slightly amid the slack demand from downstream users. Consumption of inventories has not been proceeding smoothly, negatively affecting PPGI prices. As the end of the month is approaching, sellers are mostly choosing to sell at lower prices to bring in cash and ease the pressure from tight liquidity. It is expected that PPGI prices in the Chinese domestic market will edge down further in the coming week.
As of October 25, HRC futures at Shanghai Futures Exchange are standing at RMB 3,540/mt ($498/mt), increasing by RMB 29/mt ($4.1/mt) or 0.8 percent since October 18, while up 2.16 percent compared to the previous trading day, October 24.
$1 = RMB 7.109