During the week ending November 15, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have continued their downtrend, 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 between $610-640/mt FOB, moving sideways on average compared to that recorded on November 8.
Specification (mm) |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
0.476 x 1,000 |
CGCC |
5,000 |
-67 |
695 |
-9 |
0.426 x 1,000 |
CGCC |
5,160 |
-67 |
717 |
-9 |
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 declined amid decreasing iron ore prices and declining HRC futures prices. PPGI producers’ capacity utilization rates have increased slightly, resulting in a relatively high supply level. Meanwhile, transaction activities have slowed down, exerting a negative impact on inventory consumption in the PPGI market. It is thought that PPGI prices in the Chinese domestic market will move down in the coming week.
As of November 15, HRC futures at Shanghai Futures Exchange are standing at RMB 3,420/mt ($475/mt), decreasing by RMB 121/mt ($17/mt) or 3.4 percent since November 8, while down 2.23 percent compared to the previous trading day, November 14.
$1 = RMB 7.1992
