During the week ending June 13, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have edged down slightly, 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 $590-595/mt, down by $5/mt on average compared to that recorded on June 6.
| Specification (mm) | Category | Average price (RMB/mt) | Weekly change (RMB/mt) | Price ($/mt) |
Weekly change ($/mt) |
| 0.476 x 1,000 | CGCC | 4,820 | -7 | 672 | -1 |
| 0.426 x 1,000 | CGCC | 4,997 | -7 | 696 | -1 |
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 edged down amid slow inventory consumption. Meanwhile, supply of PPGI has been at a relatively high level, resulting in a contrast between supply and demand. It is currently the plum rainy season in the lower and middle reaches of the Yangtze River, slackening the demand for PPGI and dragging down its prices. However, major Chinese steelmaker Baowu Group announced stable ex-works prices for PPGI for delivery in July, bolstering spot prices to a certain degree. It is expected that PPGI prices in the Chinese domestic market will see slight decreases in the coming week.
As of June 13, HRC futures at Shanghai Futures Exchange are standing at RMB 3,082/mt ($428/mt), decreasing by RMB 10/mt (1.4/mt) or 0.3 percent since June 6, while down 0.26 percent compared to the previous trading day, June 12.
$1 = RMB 7.1772