During the week ending July 4, 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.
Offer prices of ex-China PPGI have been heard at $585-595/mt, edging up by $7.5/mt on average compared to June 27.
Average PPGI prices in the local Chinese market are presented in the following table.
| Specification (mm) | Category | Average price (RMB/mt) | Weekly change (RMB/mt) | Price ($/mt) |
Weekly change ($/mt) |
| 0.476 x 1,000 | CGCC | 4,800 | - | 671 | +1 |
| 0.426 x 1,000 | CGCC | 4,977 | - | 696 | +1 |
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 remained stable amid the sluggish demand from downstream users. The Central Financial Committee (CFCC) has stated that China will focus on Chinese enterprises’ low-priced and unorganized competition, aiming to regulate excessive competition, which has bolstered market sentiments. HRC futures prices have increased, which will exert a positive impact on the PPGI market. It is expected that PPGI prices in the Chinese domestic market will edge up slightly in the coming week.
As of July 4, HRC futures at Shanghai Futures Exchange are standing at RMB 3,202/mt ($436/mt), increasing by RMB 81/mt (11.3/mt) or 2.6 percent since June 27, while up 0.25 percent compared to the previous trading day, July 3.
$1 = RMB 7.1535
