During the week ending September 2, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have moved down, though 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 $750-760/mt, moving down by $15/mt week on week.
Specification (mm) |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
0.476 x 1,000 |
CGCC |
6,050 |
-76 |
878 |
-17 |
0.426 x 1,000 |
CGCC |
6,123 |
-77 |
889 |
-17 |
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 on a downtrend amid decreasing HRC futures prices. Meanwhile, transaction activities in the PPGI market have not been as good as market players expected, exerting a negative impact on sentiments. At the beginning of September, PPGI prices have indicated decreases, resulting in market players’ concerns regarding the future market prospects. Moreover, sporadic Covid-19 cases have been found in many regions of China, which will exert a negative impact on demand from downstream users. It is thought that PPGI prices in the Chinese domestic market will edge down slightly in the coming week.
As of September 2, HRC futures prices (main contract shifted from hc2210 to hc2301) at Shanghai Futures Exchange (SHFE) are standing at RMB 3,700/mt ($537/mt), down RMB 213/mt ($31/mt) or 5.4 percent from RMB 3,913/mt on August 26.
$1 = RMB 6.8917
