During the week ending September 18, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have moved sideways, 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.
|
Specification (mm) |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
|
0.476 x 1,000 |
CGCC |
6,113 |
0 |
904 |
+10 |
|
0.426 x 1,000 |
CGCC |
6,233 |
0 |
922 |
+11 |
13 percent VAT is included in all prices and all prices are ex-warehouse.
During the given week, ferrous metal futures prices in China have continued to edge down, exerting a negative impact on PPGI prices in the spot market. Meanwhile, downstream users have been unwilling to conclude purchases oof PPGI as they are worried about the prospects for the future market. However, the relatively low inventory levels may provide support for PPGI prices. At the same time, major Chinese steelmakers Hesteel and Shougang announced respective increases in ex-works prices for PPGI by RMB 300/mt ($45/mt) and RMB 100/mt ($15/mt) for October delivery, bolstering market players’ sentiments. It is thought that PPGI prices in the Chinese domestic market will fluctuate within a limited range in the coming week.
As of September 18, HRC futures prices at Shanghai Futures Exchange (SHFE) are standing at RMB 3,723/mt ($551/mt), down RMB 56/mt ($8.3/mt) or 1.5 percent from RMB 3,779/mt on September 11.
$1 = RMB 6.7591