During the week ending October 28, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have continued their downtrend, though transaction activity in the domestic market has been at low-to-medium levels.
Offer prices of ex-China PPGI have been heard between $710-720/mt, moving down by $10/mt week on week.
Average PPGI prices in the local Chinese market are presented in the following table:
|
Specification (mm) |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
|
0.476 x 1,000 |
CGCC |
5,850 |
-33 |
817 |
-10 |
|
0.426 x 1,000 |
CGCC |
5,900 |
-43 |
824 |
-11 |
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 moved down amid the continuous decreases in HRC futures prices. Meanwhile, demand for PPGI has been slack, exerting a negative impact on prices. At the same time, bearish sentiment has prevailed among market players, also weakening the support for the PPGI market. It is expected that PPGI prices in the Chinese domestic market will likely continue to decrease in the coming week.
As of October 28, HRC futures prices at Shanghai Futures Exchange (SHFE) are standing at RMB 3,530/mt ($492/mt), down RMB 121/mt ($17/mt) or 3.3 percent from RMB 3,651/mt on October 21.
$1 = RMB 7.1698