During the week ending August 4, 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 $750-760/mt, moving up by $10/mt compared to last week.
|
Specification (mm) |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
|
0.476 x 1,000 |
CGCC |
5,747 |
0 |
805 |
-1 |
|
0.426 x 1,000 |
CGCC |
5,807 |
0 |
813 |
-1 |
13 percent VAT is included in all prices and all prices are ex-warehouse.
During the given week, though declining HRC futures prices have exerted a negative impact on PPGI prices in the spot market, tight supply has provided some support for prices. Most market players have chosen to hold their prices stable amid the support from firm production costs. However, the floods in northern China have negatively affected market sentiments and will likely continue to do so in the near future. It is thought that PPGI prices in the Chinese domestic market will edge down in the coming week.
As of August 4, HRC futures prices at Shanghai Futures Exchange (SHFE) are standing at RMB 3,990/mt ($559/mt), down RMB 117/mt ($16.4/mt) or 3.1 percent from RMB 4,117/mt on July 28.
$1 = RMB 7.1418