During the week ending October 10, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have edged 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 $605-635/mt, remaining stable on average compared to September 26.
| Specification (mm) | Category | Average price (RMB/mt) | Weekly change (RMB/mt) | Price ($/mt) |
Weekly change ($/mt) |
| 0.476 x 1,000 | CGCC | 4,847 | -43 | 682 | -6 |
| 0.426 x 1,000 | CGCC | 5,023 | -43 | 707 | -6 |
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 declining HRC futures prices. Demand for PPGI from downstream users has not improved yet, while inventories have increased, exerting a negative impact on prices. Some traders in the PPGI market are unsure of the future market trend and are holding a cautious wait-and-see stance. It is expected that PPGI prices in the Chinese domestic market will move sideways in the coming week.
As of October 10, HRC futures at Shanghai Futures Exchange are standing at RMB 3,285/mt ($463/mt), decreasing by RMB 28/mt ($3.9/mt) or 0.8 percent since September 26, while up 0.37 percent compared to the previous trading day, October 9.
$1 = RMB 7.1048
