During the week ending September 15, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have indicated a slight uptrend, though transaction activity in the domestic market has been at low-to-medium levels. Offer prices of ex-China PPGI have been heard between $685-715/mt, declining by $20/mt compared to last week.
Average PPGI prices in the local Chinese market are presented in the following table:
|
Specification (mm) |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
|
0.476 x 1,000 |
CGCC |
5,800 |
+13 |
808 |
+2 |
|
0.426 x 1,000 |
CGCC |
5,860 |
+13 |
816 |
+2 |
13 percent VAT is included in all prices and all prices are ex-warehouse.
During the given week, PPGI prices have moved up against the backdrop of the uptrend in HRC futures prices. Meanwhile, major Chinese steelmakers, including Baosteel and Anshan Iron and Steel, have raised their ex-works prices for PPGI for delivery in October by RMB 100/mt ($14/mt), positively affecting spot prices. Import iron ore prices have edged up again and are at relatively high levels, bolstering PPGI prices from the cost side. Downstream users will be more eager to conclude purchases for PPGI as the long National Day holiday period (September 29-October 6) is approaching. It is thought that PPGI prices in the Chinese domestic market may see a rising trend in the coming week.
As of September 15, HRC futures prices at Shanghai Futures Exchange (SHFE) are standing at RMB 3,892/mt ($542/mt), up by RMB 83/mt ($11.6/mt) or 2.2 percent from RMB 3,809/mt on September 8.
$1 = RMB 7.1786