During the week ending March 22, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have edged down, though at a slower pace, 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 $650-680/mt, moving down by $10/mt on high end compared to that recorded on March 15.
Specification (mm) |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
0.476 x 1,000 |
CGCC |
5,570 |
-17 |
785 |
-2 |
0.426 x 1,000 |
CGCC |
5,630 |
-17 |
793 |
-2 |
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 indicated slight declines, while inventory has decreased gradually. Market sentiments have improved to a certain degree, exerting a positive impact on the PPGI market. However, inventory of PPGI has been at relatively high levels amid the ongoing slack demand over the past few weeks. Market players are considering raising their PPGI prices as they think they have reached bottom levels. Currently, some state-owned large PPGI producers are implementing maintenance works and have halted production, aiming to stabilize prices by reducing supplies to the market. It is expected that PPGI prices in the Chinese domestic market will likely edge up in the coming week.
As of March 22, HRC futures at Shanghai Futures Exchange are standing at RMB 3,822/mt ($538/mt), increasing by RMB 130/mt ($18.3/mt) or 3.5 percent since March 15, while up 0.53 percent compared to the previous trading day, March 21.
$1 = RMB 7.1004
