During the week ending April 28, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have declined, though 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 between $755-765/mt, moving down by $50/mt compared to last week.
|
Specification (mm) |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
|
0.476 x 1,000 |
CGCC |
5,937 |
-33 |
857 |
-5 |
|
0.426 x 1,000 |
CGCC |
5,997 |
-33 |
866 |
-5 |
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 continued their downtrend amid the slack demand from downstream users. Currently, market players think the PPGI market is characterized by oversupply, which exerts a negative impact on prices. PPGI producers have started to implement production reductions, aiming to ease the pressure on the supply side. However, bearish sentiments prevail among market players since the Labor Day holiday (April 29-May 3) is approaching. It is thought that PPGI prices in the Chinese domestic market will likely move down in the coming week, though market players expect prices to bottom up in May if production cuts are effective.
As of April 28, HRC futures prices at Shanghai Futures Exchange (SHFE) are standing at RMB 3,721/mt ($538/mt), down RMB 162/mt ($23.4/mt) or 4.2 percent from RMB 3,883/mt on April 21.
$1 = RMB 6.924