During the week ending July 21, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have indicated rises, though transaction activity in the domestic market has been at low-to-medium levels. Offer prices of ex-China PPGI have been heard at $725-730/mt, moving sideways compared to last week.
Average PPGI prices in the local Chinese market are presented in the following table.
|
Specification (mm) |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
|
0.476 x 1,000 |
CGCC |
5,687 |
23 |
796 |
3 |
|
0.426 x 1,000 |
CGCC |
5,747 |
23 |
804 |
3 |
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 edged up amid the increasing ferrous metal futures prices. At the same time, raw material prices, including iron ore and coke prices have moved up, bolstering PPGI prices from the cost side. However, demand for PPGI has been slack as the very hot weather has exerted a negative impact on construction activities. It is thought that PPGI prices in the Chinese domestic market may continue to fluctuate within a limited range in the coming week.
As of July 21, HRC futures prices at Shanghai Futures Exchange (SHFE) are standing at RMB 3,933/mt ($550mt), up RMB 59/mt ($8.3/mt) or 1.5 percent from RMB 3,874/mt on July 14.
$1 = RMB 7.1456