During the week ending October 24, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have moved down 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 $595-620/mt, down $7.5/mt on average compared to October 17.
| Specification (mm) | Category | Average price (RMB/mt) | Weekly change (RMB/mt) | Price ($/mt) |
Weekly change ($/mt) |
| 0.476 x 1,000 | CGCC | 4,817 | -17 | 679 | -2 |
| 0.426 x 1,000 | CGCC | 4,977 | -27 | 702 | -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 decreased amid the prevailing cautious sentiments. Inventories of PPGI have declined slightly, providing support for prices. Following the 4th Plenary Session of the 20th CPC Central Committee, market players have some doubts about what positive news will emerge. However, the increasing prices of raw materials, including coking coal and coke, will bolster PPGI prices from the cost side. It is expected that PPGI prices in the Chinese domestic market may fluctuate within a limited range in the coming week.
As of October 24, HRC futures at Shanghai Futures Exchange are standing at RMB 3,250/mt ($458/mt), increasing by RMB 46/mt ($6.5/mt) or 1.4 percent since October 17, while up 0.03 percent compared to the previous trading day, October 23.
$1 = RMB 7.0928
