During the week ending August 14, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have edged up further, 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.
|
Specification (mm) |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
|
0.476 x 1,000 |
CGCC |
5,980 |
+17 |
862 |
+3 |
|
0.426 x 1,000 |
CGCC |
6100 |
+17 |
879 |
+3 |
13 percent VAT is included in all prices and all prices are ex-warehouse.
During the given week, the high levels of iron ore prices have made steelmakers willing to raise their offer prices for PPGI. Meanwhile, major Chinese steelmaker Baosteel has raised its local base prices for pre-painted galvanized iron (PPGI) by RMB 400/mt ($57/mt) for September, also exerting a positive impact on the PPGI market. At the same time, inventory in the PPGI market has been relatively low, resulting in bullish sentiment for the future prospects for the market. It is expected that PPGI prices in the Chinese domestic market will likely fluctuate within a limited range in the coming week.
As of August 14, HRC futures prices at Shanghai Futures Exchange (SHFE) are standing at RMB 3,926/mt ($562.5/mt), up RMB 22/mt ($3.2/mt) or 0.56 percent from RMB 3,904/mt on August 7.
$1 = RMB 6.9405