During the week ending January 15, 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 |
6,496 |
0 |
1,005 |
+1 |
|
0.426 x 1,000 |
CGCC |
6,616 |
0 |
1,024 |
+2 |
13 percent VAT is included in all prices and all prices are ex-warehouse.
During the given week, PPGI prices have moved on an overall stable trend amid the relatively low level of inventory. Approaching the Chinese New Year holiday (February 11-17), demand for PPGI has slackened, weakening the support for prices. At the same time, the worsening Covid-19 pandemic has exerted a negative impact on the steel market. However, steel mills’ capacity utilization rates will likely decrease. It is thought that PPGI prices in the Chinese domestic market will likely move sideways in the coming week.
As of January 15, HRC futures prices at Shanghai Futures Exchange (SHFE) are standing at RMB 4,489/mt ($695/mt), down RMB 157/mt ($24.3/mt) or 3.38 percent from RMB 4,646/mt on January 8.
$1 = RMB 6.4633