During the week ending October 18, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have moved down, 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 at $620-650/mt, edging down by $7.5/mt on average compared to October 11.
Specification (mm) |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
0.476 x 1,000 |
CGCC |
5,083 |
-110 |
713 |
-15 |
0.426 x 1,000 |
CGCC |
5,243 |
-110 |
736 |
-15 |
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 on a downtrend amid the decreases seen in HRC futures prices caused by the prevailing cautious sentiments. PPGI producers’ capacity utilization rates have increased, while inventory consumption has slowed down, resulting in relatively higher inventory levels compared to the same period last year. However, production of PPGI may not decrease significantly in the near term, which will exert a further negative impact on prices. It is thought that PPGI prices in the Chinese domestic market will fluctuate within a limited range in the coming week.
As of October 18, HRC futures at Shanghai Futures Exchange are standing at RMB 3,511/mt ($492/mt), decreasing by RMB 88/mt ($24/mt) or 2.4 percent since October 11, while down 0.79 percent compared to the previous trading day, October 17.
$1 = RMB 7.1274