During the week ending December 6, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have moved up due to the increase seen in Shanghai, though remaining stable in other regions of China, while transaction activity in the domestic market has been at medium levels.
Prices for PPGI (0.476 mm thick) in Shanghai have increased by RMB 100/mt ($14/mt) over the past week to RMB 5,300/mt ($753/mt) ex-warehouse. Average PPGI prices in the local Chinese market are presented in the following table.
|
Product name |
Specification (mm) |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
|
PPGI |
0.476 x 1,000 |
CGCC |
5,730 |
+33 |
814 |
+4 |
|
PPGI |
0.426 x 1,000 |
CGCC |
5,850 |
+33 |
831 |
+4 |
13 percent VAT is included in all prices and all prices are ex-warehouse.
During the given week, a supply shortage has pushed up PPGI prices in the Shanghai market. However, the weather has been very cold in China, which has negatively affected the demand for PPGI. Traders now have relatively sufficient funds in hand due to quite good sales activities recently. However, some traders have started to adopt a cautious stance and have been less willing to build up stocks. It is expected that PPGI prices in the Chinese domestic market will move sideways in the coming week.
As of December 6, HRC futures prices at Shanghai Futures Exchange (SHFE) are standing at RMB 3,621/mt ($514.5/mt), up RMB 65/mt or 1.83 percent from RMB 3,556/mt ($505.3/mt) on November 29.
$1 = RMB 7.038