During the week ending May 22, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have moved up significantly, 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.
Specification (mm) |
Category |
Average price (RMB/mt) |
Weekly change (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
0.476 x 1,000 |
CGCC |
5,796 |
+83 |
817 |
+12 |
0.426 x 1,000 |
CGCC |
5,916 |
+83 |
834 |
+12 |
13 percent VAT is included in all prices and all prices are ex-warehouse.
During the given week, raw material prices have moved up continuously, exerting a positive impact on local PPGI prices. Meanwhile, steelmakers started to implement production cuts ahead of the National People’s Congress (NPC) and the Chinese People’s Political Consultative Conference (CPPCC), easing the pressure from the supply side. Inventories of PPGI have decreased, bolstering PPGI prices. It is expected that PPGI prices in the Chinese domestic market will move up further in the coming week.
As of May 22, HRC futures prices at Shanghai Futures Exchange (SHFE) are standing at RMB 3,415/mt ($470/mt), up RMB 50/mt ($7.0/mt) or 1.5 percent from RMB 3,365/mt on May 15.
$1 = RMB 7.0939
