During the week ending December 14, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have edged down, while transaction activity in the domestic market has been at low levels. Average PPGI prices in the local Chinese market are presented in the following table.
During the given week, bearish sentiment has prevailed among players in the domestic PPGI market due to slack demand amid the current cold winter weather. Although major Chinese steelmakers Baosteel and Wuhan Iron and Steel Co. (WISCO) have reduced their ex-works prices for hot rolled coil (HRC) by RMB 300/mt ($43.5/mt) for January delivery, their ex-works prices for PPGI have remained stable, thereby providing some support for the PPGI market. At the same time, HRC futures prices at Shanghai Futures Exchange (SHFE) have rebounded in recent trading days, which may exert a positive impact on the PPGI market. However, bookings from downstream users have been on the slack side and this has contributed to reductions in production by some PPGI producers. It is thought that PPGI prices in the Chinese domestic market will likely move on a soft trend in the coming week.
|
Product name |
Spec. |
Quality |
City |
Steel plant/origin |
Price (RMB/mt) |
Price ($/mt) |
Weekly change (RMB/mt) |
|
Thick color coated coils |
0.476 mm x 1,000 x C |
CGCC |
Shanghai |
NewDaZhong |
6.450 |
935 |
↓50 |
|
Guangzhou |
Huamei |
5.850 |
848 |
0 |
|||
|
Boxing |
Shandong Guanzhou |
5.940 |
861 |
↓30 |
|||
|
Average |
- |
6.080 |
881 |
↓27 |
|||
|
Thin color coated coils |
0.426 mm x 1,000 x C |
CGCC |
Shanghai |
NewDaZhong |
7.050 |
1022 |
↓50 |
|
Guangzhou |
Huamei |
6.000 |
870 |
0 |
|||
|
Boxing |
Shandong Guanzhou |
6.150 |
891 |
↓30 |
|||
|
Average |
- |
6.400 |
928 |
↓27 |
16 percent VAT is included in all prices and all prices are ex-warehouse.
$1 = RMB 6.90