During the week ending November 1, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have continued their downward trend, 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 |
5,563 |
-133 |
790 |
-15 |
|
PPGI |
0.426 x 1,000 |
CGCC |
5,866 |
-133 |
833 |
-15 |
13 percent VAT is included in all prices and all prices are ex-warehouse.
During the given week, traders have come under tighter financial pressure as they need to settle their payments to steelmakers by the end of the month. In order to avoid potential risks, traders have chosen to sell at lower prices, exerting a negative impact on PPGI prices in the spot market.
Many regions in China are implementing production restrictions for the winter season, which will reduce output, while demand from downstream users will also slacken. Accordingly, both supply and demand are expected to decline.
Meanwhile, hot rolled coil (HRC) futures prices at Shanghai Futures Exchange (SHFE) have decreased from RMB 3,360/mt on October 25 to RMB 3,358/mt ($476/mt) on November 1, down 0.06 percent.
$1 = RMB 7.044