During the week ending September 27, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have increased, 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 $610-625/mt, edging up by $5/mt on average compared to September 20.
Specification (mm) |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
0.476 x 1,000 |
CGCC |
5,010 |
10 |
715 |
1 |
0.426 x 1,000 |
CGCC |
5,170 |
10 |
738 |
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 up slightly amid a series of stimulus policies issued by the People’s Bank of China, for instance, cutting the reserve requirement ratio (RRR) for Chinese banks by 0.5 percentage points and decreasing the open market seven-day reverse repurchase operation rate by 20 basis points to 1.5 percent, both effective as of September 27. HRC futures prices have seen continuous rises since September 24, exerting a positive impact on PPGI prices. It is thought that PPGI prices in the Chinese domestic market will likely edge up further in the coming week.
As of September 27, HRC futures at Shanghai Futures Exchange are standing at RMB 3,430/mt ($489/mt), increasing by RMB 202/mt ($29/mt) or 6.3 percent since September 20, while up 2.94 percent compared to the previous trading day, September 26.
$1 = RMB 7.0101
