During the week ending August 16, 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-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 at $625-630/mt, moving down by $22.5 on average compared to August 9.
Specification (mm) |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
0.476 x 1,000 |
CGCC |
5,223 |
-114 |
731 |
-16 |
0.426 x 1,000 |
CGCC |
5,383 |
-114 |
753 |
-16 |
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 continued their downtrend amid decreasing HRC futures prices and declining raw material prices. Meanwhile, demand for PPGI has remained slack, exerting a negative impact on prices. PPGI producers’ capacity utilization rates will continue to be at relatively low levels, which will bolster prices to a certain degree. Steelmakers have mostly cut their ex-works prices for September delivery, weakening the support for PPGI prices in the spot market. It is thought that PPGI prices in the Chinese domestic market will edge down further in the coming week.
As of August 16, HRC futures at Shanghai Futures Exchange are standing at RMB 3,161/mt ($442/mt), decreasing by RMB 269/mt ($37.6/mt) or 7.8 percent since August 9, while down 1.8 percent compared to the previous trading day, August 15.
$1 = RMB 7.1464
