During the week ending August 9, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have continued their downtrend, 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 $640-660/mt FOB, remaining stable compared to that recorded on August 2.
Specification (mm) |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
0.476 x 1,000 |
CGCC |
5,337 |
-70 |
747 |
-10 |
0.426 x 1,000 |
CGCC |
5,497 |
-70 |
769 |
-10 |
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 continued their downtrend amid declining HRC futures prices. At the same time, iron ore prices have indicated a declining trend, also exerting a negative impact on the PPGI market. In recent weeks, the capacity utilization rates of PPGI producers remained at a relatively low level, while inventories have increased, with the slack demand still having a big impact on prices. It is thought that PPGI prices in the Chinese domestic market will likely see further decreases in the coming week.
As of August 9, HRC futures at Shanghai Futures Exchange are standing at RMB 3,430/mt ($480/mt), decreasing by RMB 95/mt ($13.3/mt) or 2.7 percent since August 2, while down 0.72 percent compared to the previous trading day, August 8.
$1 = RMB 7.1449