During the week ending April 12, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have seen further decreases, while 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 $650-680/mt, moving sideways compared to those recorded on March 29.
|
Specification (mm) |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
|
0.476 x 1,000 |
CGCC |
5,537 |
-26 |
780 |
-4 |
|
0.426 x 1,000 |
CGCC |
5,597 |
-26 |
789 |
-4 |
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 indicated declines as the demand from downstream users has not been strong as expected. The cautious sentiments prevailed among market players, exerting a negative impact on PPGI prices. At the same time, PPGI consumption has been low, resulting in relatively high inventory level and weakening the support to its prices. However, HRC futures prices moved on an uptrend, which will bolster PPGI prices in the near future. It is expected that PPGI prices in the Chinese domestic market will likely fluctuate within a limited range in the coming week.
As of April 12, HRC futures at Shanghai Futures Exchange are standing at RMB 3,779/mt ($532/mt), increasing by RMB 154/mt ($22/mt) or 4.2 percent since March 29, while up 0.69 percent compared to the previous trading day, April 11.
$1 = RMB 7.0967