During the week ending September 6, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have indicated a declining 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.
Offer prices of ex-China PPGI have been heard between $605-630/mt, decreasing by $5/mt on average compared to August 30.
Specification (mm) |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
0.476 x 1,000 |
CGCC |
5,033 |
-117 |
710 |
-16 |
0.426 x 1,000 |
CGCC |
5,193 |
-117 |
732 |
-16 |
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 continued their downtrend amid decreasing HRC futures prices. PPGI producers’ capacity utilization rates have decreased for four consecutive weeks, providing support for prices. However, demand for PPGI has remained slack, while downstream users have been cautious about concluding purchases. It is expected that PPGI prices in the Chinese domestic market will edge down in the coming week.
As of September 6, HRC futures at Shanghai Futures Exchange are standing at RMB 3,096/mt ($436/mt), decreasing by RMB 243/mt ($34/mt) or 7.3 percent since August 30, while down 1.99 percent compared to the previous trading day, September 5.
$1 = RMB 7.0925
