During the week ending October 18, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have moved downwards, 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.
Product name |
Specification (mm) |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
PPGI |
0.476 x 1,000 |
CGCC |
5,796 |
-33 |
820 |
-4 |
PPGI |
0.426 x 1,000 |
CGCC |
6,100 |
-33 |
863 |
-4 |
13 percent VAT is included in all prices and all prices are ex-warehouse.
During the given week, demand for PPGI from downstream users in China has been slack, pushing sellers to lower their prices. Meanwhile, the downtrends in ferrous metal futures prices and iron ore prices have also weakened the support for the PPGI market. HRC futures prices at Shanghai Futures Exchange (SHFE) have decreased from RMB 3,372/mt on October 11 to RMB 3,300/mt ($466/mt) on October 18, down 2.1 percent.
Traders stated that they are seeking to keep their inventories at relatively low levels in the coming months to avoid possible risks as the Chinese New Year holiday (January 24-30) will be earlier than in previous years. It is thought that PPGI prices in the Chinese domestic market will likely move on a soft trend in the coming week.
$1=RMB 7.069