During the week ending May 12, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have moved down, 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 $745-765/mt, moving down by $10/mt compared to last week.
|
Specification (mm) |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
|
0.476 x 1,000 |
CGCC |
5,810 |
-77 |
836 |
-11 |
|
0.426 x 1,000 |
CGCC |
5,870 |
-77 |
845 |
-11 |
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 downtrend amid declining HRC futures prices. Meanwhile, iron ore prices have moved down, weakening the support for PPGI prices from the cost side. Moreover, demand has been sluggish, exerting a negative impact on the PPGI market. At the same time, major Chinese steelmaker Baosteel has cut its prices for pre-painted galvanized iron (PPGI) by RMB 150/mt ($22/mt) for delivery in June, negatively affecting market sentiments. It is expected that PPGI prices in the Chinese domestic market will edge down in the coming week.
As of May 12, HRC futures prices at Shanghai Futures Exchange (SHFE) are standing at RMB 3,642/mt ($524/mt), down RMB 34/mt ($4.9/mt) or 0.9 percent from RMB 3,676/mt on May 5.
$1 = RMB 6.9481