During the week ending August 18, 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.
Offer prices of ex-China PPGI have been heard between $710-720/mt, remaining stable compared to last week.
Average PPGI prices in the local Chinese market are presented in the following table:
|
Specification (mm) |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
|
0.476 x 1,000 |
CGCC |
5,790 |
+33 |
804 |
+5 |
|
0.426 x 1,000 |
CGCC |
5,850 |
+33 |
812 |
+5 |
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 edged up slightly amid the relatively low inventory level. Demand for PPGI has been slack as it has still been in traditional offseason. As it is approaching to the peak season, market players expected better performance in PPGI market, which might bolster its prices. Chinese policymakers have issued some stimulus policies, aiming to boost economic development, especially the performance in real estate industry, which will likely exert a positive impact on PPGI market. At the same time, control measures to curb crude steel output in the remainder of the current year will also positively affect market participants’ sentiments. It is expected that PPGI prices in the Chinese domestic market may edge up in the coming week.
As of August 18, HRC futures prices at Shanghai Futures Exchange (SHFE) are standing at RMB 3,905/mt ($542/mt), down RMB 32/mt ($4.4/mt) or 0.8 percent from RMB 3,937/mt on August 11.
$1 = RMB 7.2006