During the week ending November 4, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have moved down, though transaction activity in the domestic market has been at low-to-medium levels. Average PPGI prices in the local Chinese market are presented in the following table.
Offer prices of ex-China PPGI have been heard between $690-700/mt, moving down by $20/mt week on week.
Specification (mm) |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
0.476 x 1,000 |
CGCC |
5,806 |
-44 |
801 |
-16 |
0.426 x 1,000 |
CGCC |
5,866 |
-34 |
810 |
-14 |
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 indicated a downward trend amid slack demand as colder weather has started to arrive in China, impacting steel consumption. But at the same time, demand from downstream users in September and October has not been as good as market players had expected, with a lack of the usual activity seen during the traditional peak season this year. At the same time, inventory of PPGI has declined, which has provided support for prices. Meanwhile, HRC futures prices have bottomed up over the past four days, which will bolster the PPGI market to some extent. It is expected that PPGI prices in the Chinese domestic market will likely move sideways in the coming week.
As of November 4, HRC futures prices at Shanghai Futures Exchange (SHFE) are standing at RMB 3,640/mt ($501.4/mt), up RMB 110/mt ($15/mt) or 3.1 percent from RMB 3,530/mt on October 28.
$1 = RMB 7.2555
