During the week ending August 1, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have edged up slightly compared to the previous week amid the relatively low inventory levels, 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 $590-620/mt, moving sideways on average compared to that recorded on July 25.
| Specification (mm) | Category | Average price (RMB/mt) | Weekly change (RMB/mt) | Price ($/mt) |
Weekly change ($/mt) |
| 0.476 x 1,000 | CGCC | 4,867 | 17 | 681 | 2 |
| 0.426 x 1,000 | CGCC | 5,043 | 17 | 705 | 2 |
13 percent VAT is included in all prices and all prices are ex-warehouse.
PPGI prices in the Chinese domestic market have moved up first while edged down later amid the changes in HRC futures prices. Inventory of PPGI has been at relatively low levels, providing certain support to its prices. Following the previous increases, market players started to be cautious as regards the future prospects for the PPGI market, weakening its prices. However, the anticipated production halt might bolster its prices. It is expected that PPGI prices in the Chinese domestic market will fluctuate within a limited range in the coming week.
As of August 1, HRC futures at Shanghai Futures Exchange are standing at RMB 3,401/mt ($476/mt), decreasing by RMB 106/mt (14.8/mt) or 3.0 percent since July 25, while down 0.58 percent compared to the previous trading day, July 31.
$1 = RMB 7.1496