During the week ending December 23, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have edged up slightly, though 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 $740-750/mt, moving sideways week on week.
Specification (mm) |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
0.476 x 1,000 |
CGCC |
5,873 |
+7 |
841 |
0 |
0.426 x 1,000 |
CGCC |
5,933 |
+7 |
850 |
0 |
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 indicated a fluctuating trend amid the slack demand from downstream users. Meanwhile, approaching the end of the current year, market players are mostly under pressure from tight liquidity and so they have chosen to sell, even at lower prices. At the same time, inventories of PPGI have risen, negatively affecting prices. However, the high levels of iron ore prices have bolstered PPGI prices. It is expected that PPGI prices in the Chinese domestic market will likely fluctuate within a limited range in the coming week.
As of December 23, HRC futures prices at Shanghai Futures Exchange (SHFE) are standing at RMB 4,045/mt ($579.5/mt), down RMB 60/mt ($8.6/mt) or 1.5 percent from RMB 4,105/mt on December 16.
$1 = RMB 6.981
