During the week ending July 24, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have moved sideways compared to July 17 amid decreasing HRC futures prices and sluggish demand from downstream users, while transaction activity in the domestic market has been at low-to-medium levels.
Offer prices of ex-China PPGI have been heard between $590-600/mt, moving sideways on average compared to that recorded on July 17.
Average PPGI prices in the local Chinese market are presented in the following table.
| Specification (mm) | Category | Average price (RMB/mt) | Weekly change (RMB/mt) | Price ($/mt) |
Weekly change ($/mt) |
| 0.476 x 1,000 | CGCC | 4,740 | - | 698 | - |
| 0.426 x 1,000 | CGCC | 4,900 | - | 721 | - |
13 percent VAT is included in all prices and all prices are ex-warehouse.
During the given week, inventories of PPGI have seen slight rises amid relatively sufficient supply as steel mills' capacity utilization rates are at high levels. Meanwhile, demand for PPGI has been sluggish in the traditional off-season amid high temperatures. Generally, demand from downstream users is unlikely provide to support for PPGI prices, while raw material prices will bolster prices from the cost side. It is thought that PPGI prices in the Chinese domestic market will likely fluctuate within a limited range or soften further to seek further bottom levels in the coming week.
As of July 24, HRC futures at Shanghai Futures Exchange are standing at RMB 3,289/mt ($489/mt), decreasing by RMB 29/mt ($4.3/mt) or 0.9 percent since July 17, while down 0.12 percent compared to the previous trading day, July 23.
$1 = RMB 6.7939
