During the week ending July 25, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have moved up amid improved market sentiments, 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 up by $7.5/mt on average compared to that recorded on July 18.
|
Specification (mm)
|
Category
|
Average price (RMB/mt)
|
Weekly change (RMB/mt)
|
Price
($/mt)
|
Weekly change ($/mt)
|
|
0.476 x 1,000
|
CGCC
|
4,850
|
57
|
679
|
8
|
|
0.426 x 1,000
|
CGCC
|
5,027
|
57
|
704
|
8
|
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 an uptrend amid rising HRC futures prices. The Chinese government has urged the curbing of excessive competition in the steel sector, resulting in the improvement of market sentiments and exerting a positive impact on PPGI prices. Prices of raw materials, including coking coal and coke have seen big increases, providing support for PPGI prices. It is thought that PPGI prices in the Chinese domestic market will move sideways in the coming week as market players have started to be cautious as regards the future prospects for the PPGI market.
As of July 25, HRC futures at Shanghai Futures Exchange are standing at RMB 3,507/mt ($491/mt), increasing by RMB 197/mt (27.6/mt) or 6.0 percent since July 18, while up 1.98 percent compared to the previous trading day, July 24.
$1 = RMB 7.1498
