During the week ending July 14, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have seen certain declines, though transaction activity in the domestic market has been at low-to-medium levels. Offer prices of ex-China PPGI have been heard between $725-730/mt, remaining stable compared to last week.
Average PPGI prices in the local Chinese market are presented in the following table.
|
Specification (mm) |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
|
0.476 x 1,000 |
CGCC |
5,663 |
-33 |
794 |
-5 |
|
0.426 x 1,000 |
CGCC |
5,723 |
-33 |
802 |
-5 |
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 edged down amid the high temperature in China, thereby some downstream users started to be on holiday for hot summer, resulting in slack demand. Inventory level of PPGI has seen slight rises, exerting a negative impact on its prices. Recently, raw material prices edged up, while which hasn’t pushed up PPGI prices yet. However, HRC futures prices indicated an uptrend since July 11, which might bolster PPGI prices to certain degree. It is expected that PPGI prices in the Chinese domestic market may fluctuate within a limited range or edge up slightly in the coming week.
As of July 14, HRC futures prices at Shanghai Futures Exchange (SHFE) are standing at RMB 3,874/mt ($543mt), up RMB 108/mt ($115/mt) or 2.9 percent from RMB 3,766/mt on July 7.
1 = RMB 7.1318