During the week ending August 25, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have indicated slight rises, though transaction activity in the domestic market has been at low-to-medium levels.
Offer prices of ex-China PPGI have been heard between $710-720/mt FOB, moving sideways compared to last week.
Average PPGI prices in the local Chinese market are presented in the following table:
|
Specification (mm) |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
|
0.476 x 1,000 |
CGCC |
5797 |
7 |
806 |
1 |
|
0.426 x 1,000 |
CGCC |
5857 |
7 |
815 |
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 indicated slight rises amid the prevailing cautious sentiments among market players. Currently, the demand for PPGI from downstream users has been limited, exerting a negative impact on its prices. Meanwhile, the import iron ore prices have seen big rises, bolstering PPGI prices from cost side. As the traditional peak season of September and October is approaching, market players thought the demand for PPGI might improve to a certain degree and will positively affect its prices. It is expected that PPGI prices in the Chinese domestic market will likely edge up in the coming week.
As of August 25, HRC futures prices at Shanghai Futures Exchange (SHFE) are standing at RMB 3,917/mt ($545/mt), up RMB 12/mt ($1.7/mt) or 0.3 percent from RMB 3,905/mt on August 18.
$1 = RMB 7.1881