During the week ending December 8, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market indicated slight declines, 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 between $725-750/mt, remaining stable on average compared to that recorded on December 1.
|
Specification (mm) |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
|
0.476 x 1,000 |
CGCC |
5,763 |
-3 |
810 |
0 |
|
0.426 x 1,000 |
CGCC |
5,823 |
-3 |
819 |
0 |
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 slacker transaction activities. At the same time, some downstream users have chosen to maintain a wait-and-see stance as regards the future prospects for the PPGI market, exerting a negative impact on prices. Inventory of PPGI has increased, weakening the support for prices. However, HRC futures prices have resumed their uptrend, bolstering PPGI prices to a certain degree. Moreover, production cuts are expected to be implemented in the near future amid environmental protection measures. It is expected that PPGI prices in the Chinese domestic market may rebound slightly in the coming week.
The rebar futures contract RB2405 has become the main rebar contract since December 7. As of December 8, HRC futures prices at Shanghai Futures Exchange (SHFE) are standing at RMB 4,149/mt ($584/mt), up by RMB 113/mt ($16/mt) or increasing by 2.8 percent from RMB 4,036/mt on December 1.
$1 = RMB 7.1123