During the week ending May 26, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have continued their downtrend, though transaction activity in the domestic market has been at low-to-medium levels. Offer prices of ex-China PPGI have been heard between $705-725/mt, moving down sharply compared to last week.
Average PPGI prices in the local Chinese market are presented in the following table.
|
Specification (mm) |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
|
0.476 x 1,000 |
CGCC |
5,730 |
-70 |
810 |
-10 |
|
0.426 x 1,000 |
CGCC |
5,790 |
-70 |
818 |
-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 have indicated further declines amid decreasing ferrous metal futures prices and declining iron ore prices. Meanwhile, demand for PPGI has remained sluggish, resulting in the prevailing cautious sentiments among market players. At the same time, inventory of PPGI has been at a relatively high level, exerting a negative impact on prices. It is expected that PPGI prices in the Chinese domestic market will edge down in the coming week.
As of May 26, HRC futures prices at Shanghai Futures Exchange (SHFE) are standing at RMB 3,606/mt ($510/mt), down RMB 116/mt ($16.4/mt) or 3.12 percent from RMB 3,722/mt on May 19.
$1 = RMB 7.076