During the week ending September 12, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have edged down slightly 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 $600-630/mt, remaining stable on average compared to that recorded on September 5.
| Specification (mm) | Category | Average price (RMB/mt) | Weekly change (RMB/mt) | Price ($/mt) |
Weekly change ($/mt) |
| 0.476 x 1,000 | CGCC | 4,890 | -17 | 689 | -2 |
| 0.426 x 1,000 | CGCC | 5,067 | -17 | 713 | -2 |
13 percent VAT is included in all prices and all prices are ex-warehouse.
PPGI prices in the Chinese domestic market have moved down first, while edging up later amid demand not seeing significant improvement in the traditional peak season. On September 12, Chinese major steelmaker Anshan Iron and Steel Co. announced that it has decided to cut its local base price by RMB 50/mt ($7/mt) for pre-painted galvanized iron (PPGI), for delivery in October, weakening the support to the prices in spot market. Recently, inventories of PPGI decreased slightly, bolstering prices to a certain degree. Market players thought the demand for PPGI will gradually improve, while the supply will remain at relatively high level. It is thought that PPGI prices in the Chinese domestic market will likely fluctuate within a limited range in the coming week.
As of September 12, HRC futures at Shanghai Futures Exchange are standing at RMB 3,364/mt ($474/mt), increasing by RMB 24/mt (3.4/mt) or 0.7 percent since September 5, while up 0.66 percent compared to the previous trading day, September 11.
$1 = RMB 7.1019
