During the week ending April 24, 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 |
5,696 |
-33 |
805 |
-5 |
0.426 x 1,000 |
CGCC |
5,816 |
-33 |
821 |
-6 |
13 percent VAT is included in all prices and all prices are ex-warehouse.
During the given week, approaching the end of the month, traders have come under pressure from tighter liquidity and so they have been willing to sell at lower prices to bring in cash. Meanwhile, demand for PPGI from downstream users has been slack, negatively affecting the PPGI market. Moreover, bearish sentiments have prevailed among market players amid the approaching Labor Day holiday (May 1-5), which will likely contribute to a fluctuating trend of PPGI prices in the coming week.
As of April 24, HRC futures prices at Shanghai Futures Exchange (SHFE) are standing at RMB 3,187/mt ($450.1/mt), down RMB 48/mt ($6.8/mt) or 1.5 percent from RMB 3,235/mt on April 17.
$1 = RMB 7.0803
