During the week ending April 21, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have moved sideways, 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 $805-815/mt, moving sideways compared to last week.
Specification (mm) |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
0.476 x 1,000 |
CGCC |
5,970 |
-83 |
868 |
-12 |
0.426 x 1,000 |
CGCC |
6,030 |
-83 |
877 |
-12 |
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 down amid the decreasing raw material prices. At the same time, demand for PPGI from downstream users has been slack, while financial tightness also exerted a negative impact on PPGI prices. The supply of PPGI has been at relatively high level, resulting in increasing inventory level. Since it is approaching to the Labor Day holiday (April 29-May 3), the demand for PPGI may unlikely improve significantly. It is expected that PPGI pries in the Chinese domestic market will likely continue the downtrend in the coming week.
As of April 21, HRC futures prices at Shanghai Futures Exchange (SHFE) are standing at RMB 3,883/mt ($565/mt), down RMB 103/mt ($15/mt) or 2.6 percent from RMB 3,986/mt on April 14.
$1 = RMB 6.8752
