During the week ending November 7, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have decreased compared to the previous week, 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 $575-610/mt, down $7.5/mt on average compared to October 31.
| Specification (mm) | Category | Average price (RMB/mt) | Weekly change (RMB/mt) | Price ($/mt) |
Weekly change ($/mt) |
| 0.476 x 1,000 | CGCC | 4,773 | -27 | 674 | -4 |
| 0.426 x 1,000 | CGCC | 4,933 | -27 | 696 | -4 |
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 HRC futures prices. Inventories of PPGI have indicated increases, reflecting sluggish demand for PPGI. Some market participants have had to cut sales prices to stimulate transaction activities. It is expected that PPGI prices in the Chinese domestic market will likely come under downward pressure in the coming week.
As of November 7, HRC futures at Shanghai Futures Exchange are standing at RMB 3,245/mt ($457/mt), decreasing by RMB 63/mt ($8.9/mt) or 1.9 percent since October 31, while down 0.34 percent compared to the previous trading day, November 6.
$1 = RMB 7.0836
