During the week ending September 19, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have moved sideways compared to the previous week, 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.
Offer prices of ex-China PPGI have been heard between $605-635/mt, up $5/mt on average compared to that recorded on September 12.
| Specification (mm) | Category | Average price (RMB/mt) | Weekly change (RMB/mt) | Price ($/mt) |
Weekly change ($/mt) |
| 0.476 x 1,000 | CGCC | 4,890 | - | 689 | - |
| 0.426 x 1,000 | CGCC | 5,067 | - | 713 | - |
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 increasing inventories. Demand for PPGI has not improved as expected, weakening the support for prices. However, since the National Day holiday (October 1-8) is approaching, stock replenishments are expected to be carried out, which will bolster PPGI prices in the coming period. It is expected that PPGI prices in the Chinese domestic market will rebound slightly in the coming week.
As of September 19, HRC futures at Shanghai Futures Exchange are standing at RMB 3,374/mt ($475/mt), increasing by RMB 10/mt (3.4/mt) or 0.3 percent since September 12, while up 0.18 percent compared to the previous trading day, September 18.
$1 = RMB 7.1128