During the week ending February 28, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have edged up slightly, 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 $610-635/mt FOB, edging up by $2.5/mt on average compared to that recorded on February 21.
| Specification (mm) | Category | Average price (RMB/mt) | Weekly change (RMB/mt) | Price ($/mt) |
Weekly change ($/mt) |
| 0.476 x 1,000 | CGCC | 4,993 | 3 | 696 | 0 |
| 0.426 x 1,000 | CGCC | 5,170 | 3 | 721 | 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 slight increases amid the relatively low inventory levels. Demand for PPGI from downstream users improved gradually, bolstering its prices to a certain degree. Recently, several countries have announced antidumping duties or filed antidumping investigations against Chinese steel products, which exerted a negative impact on market sentiments. However, market players still look forward to better demand in the near future as the traditional peak season is approaching and more stimulus policies are expected after the two sessions next week. It is expected that PPGI prices in the Chinese domestic market will rebound slightly in the coming week.
As of February 28, HRC futures at Shanghai Futures Exchange are standing at RMB 3,425/mt ($478/mt), decreasing by RMB 45/mt (6.3/mt) or 1.3 percent since February 21, while up 0.18 percent compared to the previous trading day, February 27.
$1 = RMB 7.1738
