During the week ending January 12, 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 at $700-750/mt, moving down by $7.5/mt on average compared to January 5.
|
Specification (mm) |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
|
0.476 x 1,000 |
CGCC |
5,777 |
- |
814 |
- |
|
0.426 x 1,000 |
CGCC |
5,837 |
- |
822 |
- |
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 slightly decreasing HRC prices. PPGI producers’ capacity utilization rates have declined a little amid the slack demand from downstream users. Inventory of PPGI has risen, with current inventory almost at the highest level in the past three years, exerting a negative impact on prices. Supply of PPGI may decrease further in the coming week, which may ease supply pressure to a certain degree. It is thought that PPGI prices in the Chinese domestic market will likely move down in the coming week.
As of January 12, HRC futures prices at Shanghai Futures Exchange (SHFE) are standing at RMB 4,026/mt ($567/mt), down by RMB 53/mt ($7.5/mt) or decreasing by 1.3 percent from RMB 4,079/mt on January 5, while up 0.2 percent compared to the previous trading day (January 11).
$1 = RMB 7.105