During the week ending December 11, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have moved up sharply, 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 |
6,346 |
+116 |
970 |
+19 |
|
0.426 x 1,000 |
CGCC |
6,466 |
+116 |
989 |
+20 |
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 moved up significantly amid surging iron ore prices and increasing HRC futures prices. At the same time, major Chinese steelmaker Baosteel raised its ex-works prices for PPGI by RMB 400/mt ($61/mt), bolstering PPGI prices. Meanwhile, the tight supply has also exerted a positive impact on the PPGI market. Moreover, inventory of PPGI has been at relatively low levels, providing support for prices. It is thought that PPGI prices in the Chinese domestic market will edge up further in the coming week.
As of December 11, HRC futures prices at Shanghai Futures Exchange (SHFE) are standing at RMB 4,325/mt ($661.3/mt), up RMB 41/mt ($6.3/mt) or 0.96 percent from RMB 4,284/mt on December 4.
$1 = RMB 6.5405