During the week ending August 8, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have moved up further 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 $605-630/mt, moving up by $12.5/mt on average compared to that recorded on August 1.
| Specification (mm) | Category | Average price (RMB/mt) | Weekly change (RMB/mt) | Price ($/mt) |
Weekly change ($/mt) |
| 0.476 x 1,000 | CGCC | 4,883 | 16 | 684 | 2 |
| 0.426 x 1,000 | CGCC | 5,060 | 17 | 709 | 2 |
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 seen increases amid the rises in HRC futures prices. Demand for PPGI from downstream users has been slack in the traditional off-season, especially amid the heavy rains in northern China and high temperatures in eastern China. However, the increasing raw material prices, including prices of coking coal and coke, have provided some support for PPGI prices. Most traders hold a strategy of keeping low inventory levels and so they have been cautious in concluding purchases of PPGI. It is thought that PPGI prices in the Chinese domestic market will move sideways in the coming week.
As of August 8, HRC futures at Shanghai Futures Exchange are standing at RMB 3,428/mt ($480/mt), increasing by RMB 27/mt (3.8/mt) or 0.8 percent since August 1, while down 0.55 percent compared to the previous trading day, August 7.
$1 = RMB 7.1382