During the week ending October 17, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have seen declines 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 between $600-630/mt, down $5/mt on average compared to that recorded on October 10.
| Specification (mm) | Category | Average price (RMB/mt) | Weekly change (RMB/mt) | Price ($/mt) |
Weekly change ($/mt) |
| 0.476 x 1,000 | CGCC | 4,833 | -13 | 681 | -2 |
| 0.426 x 1,000 | CGCC | 5,003 | -20 | 705 | -3 |
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 declined amid decreasing HRC futures prices. Meanwhile, cautious sentiments have prevailed among market players, exerting a negative impact on PPGI prices. If demand for PPGI improves in ‘silver October’ - another month of the peak season, prices may increase in the near term. It is thought that PPGI prices in the Chinese domestic market may rebound in the coming week.
As of October 17, HRC futures at Shanghai Futures Exchange are standing at RMB 3,204/mt ($463/mt), decreasing by RMB 81/mt ($11.4/mt) or 2.5 percent since October 10, while down 0.16 percent compared to the previous trading day, October 16.
$1 = RMB 7.0949
