During the week ending February 23, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have edged down slightly, though transaction activity in the domestic market has been at low-to-medium levels. Offer prices of ex-China PPGI have been heard between $680-735/mt, edging down by $5/mt on average compared to February 9.
Average PPGI prices in the local Chinese market are presented in the following table.
|
Specification (mm) |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
|
0.476 x 1,000 |
CGCC |
5,717 |
-6 |
805 |
-1 |
|
0.426 x 1,000 |
CGCC |
5,777 |
-6 |
813 |
-1 |
13 percent VAT is included in all prices and all prices are ex-warehouse.
During the given week, the decreasing trend of HRC futures prices has exerted a negative impact on PPGI prices and market sentiments. At the same time, demand for PPGI has not seen significant improvement yet due to the wave of cold weather hitting China. Moreover, the inventory of PPGI has increased, weakening the support for prices. It is thought that PPGI prices in the Chinese domestic market may fluctuate within a limited range in the coming week.
As of February 23, HRC futures prices at the Shanghai Future Exchange are standing at RMB 3,905/mt ($550/mt), decreasing by RMB 79/mt ($11.1/mt) or 2.0 percent compared to February 8, while indicating a rise of 0.03 percent compared to the previous trading day (February 22).
$1 = RMB 7.1064