During the week ending December 1, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have moved sideways, 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, moving up by $5/mt on average compared to that recorded on November 24.
|
Specification (mm) |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
|
0.476 x 1,000 |
CGCC |
5,767 |
- |
811 |
+1 |
|
0.426 x 1,000 |
CGCC |
5,827 |
- |
820 |
+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 moved sideways amid declining HRC futures prices. Meanwhile, bearish sentiment has prevailed among market players, exerting a negative impact on PPGI prices. Traders have been unwilling to take part in transaction activities, negatively affecting the PPGI market. At the same time, inventory of PPGI has risen, which will weaken the support for PPGI prices. Recently, another round of hikes has been seen in coke prices, which may bolster PPGI prices from the cost side. It is thought that PPGI prices in the Chinese domestic market will edge down slightly in the coming week.
As of December 1, HRC futures prices at Shanghai Futures Exchange (SHFE) are standing at RMB 4,025/mt ($567/mt), down by RMB 29/mt ($4.1/mt) or decreasing by 0.7 percent from RMB 4,054/mt on November 24.
$1 = RMB 7.1018