During the week ending January 10, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have edged down, while transaction activity in the domestic market has been at low-to-medium levels.
Offer prices of ex-China PPGI have been heard in the range of $590-620/mt FOB, moving down by $7.5/mt on average compared on January 3.
Average PPGI prices in the local Chinese market are presented in the following table:
Specification (mm) |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
0.476 x 1,000 |
CGCC |
4,883 |
-17 |
679 |
-2 |
0.426 x 1,000 |
CGCC |
5,060 |
-17 |
704 |
-2 |
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 decreased amid declining HRC futures prices. Some market players have reduced their offer prices to stimulate transaction activities, but the actual market performance has not been good. Bearish sentiments have prevailed among market players as downstream buyers have been unwilling to build up stocks ahead of the Chinese New Year holiday (January 28-February 4). It is thought that PPGI prices in the Chinese domestic market will edge down further in the coming week.
As of January 10, HRC futures at Shanghai Futures Exchange are standing at RMB 3,312/mt ($461/mt), decreasing by RMB 65/mt ($9.0/mt) or 1.9 percent since January 3, while up 0.09 percent compared to the previous trading day, January 9.
$1 = RMB 7.1891
