Chinese domestic PPGI prices almost stable due to slack demand

Friday, 14 January 2022 15:26:41 (GMT+3)   |   Shanghai

During the week ending January 14, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have declined very slightly, while transaction activity in the domestic market has been at low-to-medium levels.

Offer prices of ex-China PPGI have been heard between $920-960/mt FOB, moving sideways week on 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

6,870

-6

1,079

0

0.426 x 1,000

CGCC

6,986

-6

1,097

0

13 percent VAT is included in all prices and all prices are ex-warehouse. 

During the given week, PPGI prices have indicated slight declines amid weak demand even though futures prices have posted some increases. As the Chinese New Year holiday is approaching, demand for PPGI has remained slack, weakening the support for prices. It is expected that PPGI prices in the Chinese domestic market will likely fluctuate within a limited range in the coming week.

As of January 14, HRC futures prices at Shanghai Futures Exchange (SHFE) are standing at RMB 4,772/mt ($750/mt), up RMB 95/mt ($15/mt) or 2.0 percent from RMB 4,677/mt on January 7.

$1 = RMB 6.3677


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