During the week ending June 14, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have indicated decreases, 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 $655-680/mt FOB, decreasing by $7.5/mt compared to that recorded on June 7.
Specification (mm) |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
0.476 x 1,000 |
CGCC |
5,540 |
-17 |
779 |
-2 |
0.426 x 1,000 |
CGCC |
5,700 |
-17 |
802 |
-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 seen slight declines amid the slow inventory consumption, resulting in relatively high inventory levels, which exerted a negative impact on its prices. However, the supply of PPGI has seen decreases for three consecutive weeks, bolstering its prices to a certain degree. Major Chinese steelmakers, including Anshan Iron and Steel and Baosteel, kept their PPGI prices stable for delivery in July, also providing certain support to PPGI market. High temperature in northern China and heavy rains in southern China slackened the demand for PPGI, which will drag down its prices in the near future. It is thought that PPGI prices in the Chinese domestic market will likely edge down in the coming week.
As of June 14, HRC futures at Shanghai Futures Exchange are standing at RMB 3,806/mt ($535/mt), decreasing by RMB 7/mt ($1/mt) or 0.18 percent since June 7, while up 0.74 percent compared to the previous trading day, June 13.
$1 = RMB 7.1151
