During the week ending December 16, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have moved on an uptrend, though transaction activity in the domestic market has been at low-to-medium levels.
Offer prices of ex-China PPGI have been heard between $740-750/mt, moving up by $10/mt week on week.
Average PPGI prices in the local Chinese market are presented in the following table.
|
Specification (mm) |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
|
0.476 x 1,000 |
CGCC |
5,866 |
+63 |
841 |
+7 |
|
0.426 x 1,000 |
CGCC |
5,926 |
+63 |
850 |
+7 |
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 up amid the decreasing inventory level and supply shortage in spot market. At the same time, HRC futures prices moved up sharply, creating the highest level over the past three months, also positively affecting PPGI prices. Moreover, raw material prices have been at high levels, bolstering PPGI prices from cost side. However, the demand for PPGI will continue to be slack, which will exert a negative impact on the future market. It is expected that PPGI prices may move sideways in the coming week.
As of December 16, HRC futures prices at Shanghai Futures Exchange (SHFE) are standing at RMB 4,105/mt ($588/mt), up RMB 74/mt ($10.6/mt) or 1.8 percent from RMB 4,031/mt on December 9.
$1 = RMB 6.9791