During the week ending November 22, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have edged down further, 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 $605-640/mt FOB, edging down by $2.5/mt on average compared to that recorded on November 15.
Specification (mm) |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
0.476 x 1,000 |
CGCC |
5,000 |
-67 |
695 |
-9 |
0.426 x 1,000 |
CGCC |
5,160 |
-67 |
717 |
-9 |
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 moved down amid the slack demand from downstream users. Both supply and demand are weak amid the prevailing cautious sentiments among market players. Lately, iron ore prices have moved up, providing some support for PPGI prices from the cost side. Meanwhile, inventory level of PPGI is not at high levels, which also bolsters prices. It is expected that PPGI prices in the Chinese domestic market will fluctuate within a limited range in the coming week.
As of November 22, HRC futures at Shanghai Futures Exchange are standing at RMB 3,448/mt ($479.5/mt), increasing by RMB 28/mt ($3.9/mt) or 0.8 percent since November 15, while down 1.32 percent compared to the previous trading day, November 21.
$1 = RMB 7.1942
