During the week ending July 28, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have continued their uptrend, though 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 $740-750/mt, moving up by $17.5/mt compared to last week.
|
Specification (mm) |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
|
0.476 x 1,000 |
CGCC |
5,747 |
60 |
806 |
8 |
|
0.426 x 1,000 |
CGCC |
5,807 |
60 |
814 |
8 |
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 risen amid increasing prices of raw materials, namely, iron ore, coking coal and coke prices. At the same time, policies for rebuilding villages inside megacities in China have exerted a positive impact on market sentiment, bolstering PPGI prices. Moreover, the continuous rises in PPGI prices have also stimulated demand from downstream users, resulting in better transaction activities in the given week. It is thought that PPGI prices in the Chinese domestic market will likely move sideways in the coming week.
As of July 28, HRC futures prices at Shanghai Futures Exchange (SHFE) are standing at RMB 4,117/mt ($577mt), up RMB 184/mt ($25.8/mt) or 4.7 percent from RMB 3,933/mt on July 21.
$1 = RMB 7.1338