During the week ending November 24, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have indicated slight rises, 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 $715-750/mt, moving up by $25/mt on average compared to that recorded on November 17.
|
Specification (mm) |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
|
0.476 x 1,000 |
CGCC |
5,767 |
17 |
810 |
2 |
|
0.426 x 1,000 |
CGCC |
5,827 |
17 |
819 |
2 |
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 seen slight rises amid relatively low inventory level. Prices of raw materials, including coke and import iron ore, have moved up, bolstering PPGI prices from the cost side. At the same time, the government has urged financial institutions to provide solid support to real estate enterprises and Shenzhen has eased the downpayment requirements for second-house purchases, which will exert a positive impact on market sentiments. However, the weather is getting colder and colder, which may negatively affect the demand for PPGI and weaken prices. It is expected that PPGI prices in the Chinese domestic market will likely fluctuate within a limited range in the coming week.
As of November 24, HRC futures prices at Shanghai Futures Exchange (SHFE) are standing at RMB 4,054/mt ($570/mt), up by RMB 42/mt ($5.9/mt) or increasing by 1.05 percent from RMB 4,012/mt on November 17.
$1 = RMB 7.1151