During the week ending May 24, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have indicated an uptrend, 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 $665-685/mt, moving up by $5/mt compared to May 17.
Specification (mm) |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
0.476 x 1,000 |
CGCC |
5,583 |
17 |
785 |
2 |
0.426 x 1,000 |
CGCC |
5,743 |
33 |
808 |
5 |
13 percent VAT is included in all prices and all prices are ex-warehouse.
During the given week, HRC futures prices have increased, exerting a positive impact on PPGI prices. Meanwhile, some major Chinese steelmakers, including Shougang Group and Baosteel, issued their ex-works prices for PPGI for delivery in June, raising their prices by RMB 100/mt ($14/mt), thereby bolstering market sentiments. At the same time, steelmakers’ production capacity utilization rates have declined slightly, resulting in certain decreases in inventory levels, which, however, are still at relatively high levels. It is expected that PPGI prices in the Chinese domestic market will move sideways in the coming week.
As of May 24, HRC futures at Shanghai Futures Exchange are standing at RMB 3,903/mt ($536/mt), increasing by RMB 54/mt ($7.6/mt) or 1.4 percent since May 17, while up 0.1 percent compared to the previous trading day, May 23.
$1 = RMB 7.1102
