During the week ending December 29, 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 $700-750/mt, moving sideways on average compared to that recorded on December 22.
|
Specification (mm) |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
|
0.476 x 1,000 |
CGCC |
5,770 |
- |
813 |
- |
|
0.426 x 1,000 |
CGCC |
5,830 |
- |
821 |
- |
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 remained stable amid the slightly declining inventory levels. At the same time, the high levels of iron ore prices bolstered PPGI prices from cost side. Currently, the supply of PPGI has been at normal level, and the production will continue to be steady at least till mid-January, while which will likely see production halts by late January due to the approaching Chinese New Year holiday. The demand for PPGI has been slack, which will weaken the support to its prices. It is expected that PPGI prices in the Chinese domestic market will likely continue the fluctuating trend within a limited range in the coming week.
As of December 29, HRC futures prices at Shanghai Futures Exchange (SHFE) are standing at RMB 4,114/mt ($579/mt), down by RMB 6/mt ($0.85/mt) or decreasing by 0.15 percent from RMB 4,120/mt on December 22, while indicated a rise of 0.05 percent compared to the previous trading day (December 28).
$1 = RMB 7.0827