During the week ending May 5, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have indicated a decreasing trend, though transaction activity in the domestic market has been at low-to-medium levels.
Offer prices of ex-China PPGI have been heard between $755-765/mt, moving sideways compared to last week.
Average PPGI prices in the local Chinese market are presented in the following table:
|
Specification (mm) |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
|
0.476 x 1,000 |
CGCC |
5,887 |
-50 |
852 |
-7 |
|
0.426 x 1,000 |
CGCC |
5,947 |
-50 |
860 |
-7 |
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 continued to move down amid declining HRC futures prices. Meanwhile, the Labor Day holiday negatively affected the demand for PPGI. Since there are only a few work days this week, buyers have mostly held a wait-and-see stance as regards concluding purchases of PPGI. It is expected that PPGI prices in the Chinese domestic market will likely move sideways in the coming week amid support from production reductions and expected stock replenishment following the holiday.
As of May 5, HRC futures prices at Shanghai Futures Exchange (SHFE) are standing at RMB 3,676/mt ($532/mt), down RMB 45/mt ($6.5/mt) or 1.2 percent from RMB 3,721/mt on April 28.
$1 = RMB 6.9114