During the week ending September 1, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have seen slight increases, 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 $710-720/mt, remaining stable compared to last week.
|
Specification (mm) |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
|
0.476 x 1,000 |
CGCC |
5,803 |
6 |
808 |
1 |
|
0.426 x 1,000 |
CGCC |
5,863 |
6 |
817 |
1 |
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 down first while moving up later amid the good expectation for the traditional peak season of September and October. PPGI producers’ capacity utilization rates have declined, resulting in decreasing supply and bolstering prices to some extent. Inventory of PPGI has declined, also providing some support for the market. Moreover, iron ore prices have moved up continuously and are at relatively high levels, positively affecting PPGI prices from the cost side. However, China is facing three typhoons, Saola, Haikui and Kirogi, which will weaken the demand for PPGI. It is thought that PPGI prices in the Chinese domestic market will likely fluctuate within a limited range in the coming week.
As of September 1, HRC futures prices at Shanghai Futures Exchange (SHFE) are standing at RMB 3,935/mt ($548/mt), up RMB 18/mt ($2.5/mt) or 0.46 percent from RMB 3,917/mt on August 25.
$1 = RMB 7.1788