During the week ending December 15, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have remained stable, 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 $725-750/mt, moving sideways on average compared to that recorded on December 8.
|
Specification (mm) |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
|
0.476 x 1,000 |
CGCC |
5,763 |
- |
812 |
+2 |
|
0.426 x 1,000 |
CGCC |
5,823 |
- |
821 |
+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 moved sideways amid the decreasing HRC futures prices and Baosteel’s raising their ex-works prices of PPGI by RMB 100/mt ($14/mt) for delivery in December. Extremely cold weather started to hit most areas of China, exerting a negative impact on market sentiments. However, coke prices saw rises, bolstering PPGI prices from cost side to a certain degree. Inventory consumption of PPGI slowed down, which might result in rises in inventory levels. On December 14, two first-tier cities in China, Beijing and Shanghai, announced cuts in the downpayment rate to 50 percent and to 40 percent in several suburban districts for second-house purchases, aiming to stimulate the real estate industry, which might bolster market players’ confidence. It is expected that PPGI prices in the Chinese domestic market will likely fluctuate within a limited range in the coming week.
As of December 15, HRC futures prices at Shanghai Futures Exchange (SHFE) are standing at RMB 4,033/mt ($568/mt), down by RMB 116/mt ($16.3/mt) or decreasing by 2.8 percent from RMB 4,149/mt on December 1.
$1 = RMB 7.0957