During the week ending January 22, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have edged 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 |
6,480 |
-16 |
1002 |
-3 |
|
0.426 x 1,000 |
CGCC |
6,600 |
-16 |
1020 |
-4 |
13 percent VAT is included in all prices and all prices are ex-warehouse.
During the given week, PPGI prices have declined amid slackening demand from downstream users due to colder weather. Meanwhile, the worsening Covid-19 pandemic in many regions of China has exerted a negative impact on the PPGI market. Migrant workers have started to go back home for the Chinese New Year holiday, weakening the support for the steel market, though many regions have issued notices to urge people to stay in the places where they work for the long holiday due to the Covid-19 pandemic. Inventory of PPGI has risen, while traders have chosen to lower sales prices in order to reduce inventory levels. It is thought that PPGI prices in the Chinese domestic market will likely fluctuate within a limited range in the coming week.
As of January 22, HRC futures prices at Shanghai Futures Exchange (SHFE) are standing at RMB 4,362/mt ($675/mt), down RMB 127/mt ($19.7/mt) or 2.83 percent from RMB 4,489/mt on January 15.
$1 = RMB 6.4617