During the week ending September 22, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have moved sideways, though transaction activity in the domestic market has been at low-to-medium levels. Offer prices of ex-China PPGI have been heard at $690-715/mt, edging up by $2.5/mt compared to last week.
Average PPGI prices in the local Chinese market are presented in the following table:
|
Specification (mm) |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
|
0.476 x 1,000 |
CGCC |
5,800 |
- |
809 |
+1 |
|
0.426 x 1,000 |
CGCC |
5,860 |
- |
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 remained stable amid the declining trend in ferrous metal futures prices and stock replenishments by downstream users ahead of the long National Day holiday (September 29-October 6). Inventory of PPGI has decreased, bolstering prices to a certain degree. Moreover, iron ore prices have been at relatively high levels, providing support for PPGI prices from the cost side. Since next week will include the last few days ahead of the long holiday, it is expected that PPGI prices in the Chinese domestic market will fluctuate within a limited range.
As of September 22, HRC futures prices at Shanghai Futures Exchange (SHFE) are standing at RMB 3,863/mt ($539/mt), down by RMB 29/mt ($4/mt) or 0.75 percent from RMB 3,892/mt on September 15.
$1 = RMB 7.1729