During the week ending November 5, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have moved 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.
|
Specification (mm) |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
|
0.476 x 1,000 |
CGCC |
7,360 |
-83 |
1,150 |
-15 |
|
0.426 x 1,000 |
CGCC |
7,460 |
-83 |
1,166 |
-14 |
13 percent VAT is included in all prices and all prices are ex-warehouse.
During the given week, PPGI prices have declined amid the continuous decreasing trend in ferrous metal futures prices and the weak sentiments among market players. As a new round of cold weather is approaching, the demand for PPGI may slacken further, which will exert a negative impact on prices. It is thought that PPGI prices in the Chinese domestic market will likely edge down in the coming week.
As of November 5, HRC futures prices at Shanghai Futures Exchange (SHFE) are standing at RMB 4,569/mt ($714/mt), down RMB 434/mt ($67.8/mt) or 8.67 percent from RMB 5,003/mt on October 29.
At the same time, offer prices of PPGI in the export market have indicated even more drastic drops to $970-1,020/mt FOB, moving down by $70/mt week on week. This has been due to the more aggressive pricing of traders, who have a negative view on the demand prospects in China up to the end of the year and who are trying to accelerate export sales.
$1 = RMB 6.398