During the week ending October 11, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have moved up further, 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 $630-655/mt, edging up by $25/mt on average compared to that recorded on September 27.
Specification (mm) |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
0.476 x 1,000 |
CGCC |
5,193 |
183 |
734 |
26 |
0.426 x 1,000 |
CGCC |
5,353 |
183 |
757 |
26 |
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 continued their uptrend after China’s stimulus policies to boost the economy and the financial markets. At the same time, major Chinese steelmaker Baosteel Group has decided to raise its local base prices for pre-painted galvanized iron (PPGI) by RMB 400/mt ($57/mt) for delivery in November, firmly bolstering market sentiments. Demand for PPGI from downstream users has not followed up yet, while increasing raw material prices have exerted a positive impact on prices. Currently, the real estate industry has indicated a rebounding trend, which may positively affect demand. It is expected that PPGI prices in the Chinese domestic market will edge up in the coming week.
As of October 11, HRC futures at Shanghai Futures Exchange are standing at RMB 3,599/mt ($509/mt), increasing by RMB 169/mt ($24/mt) or 4.9 percent since September 27, while up 0.62 percent compared to the previous trading day, October 10.
$1 = RMB 7.0731