During the week ending July 17, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have moved on a stable trend, 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 |
5,913 |
0 |
845 |
-1 |
|
0.426 x 1,000 |
CGCC |
6,033 |
0 |
863 |
-2 |
13 percent VAT is included in all prices and all prices are ex-warehouse.
During the given week, inventory of PPGI in China has been relatively low, providing support for prices. Meanwhile, other flat steel prices have moved up in the local market, bolstering the PPGI market. However, market players have become more cautious following the continuous rises seen in the financial markets, which will likely exert a negative impact on the steel market. On the other hand, the rainy weather conditions in China are expected to come to an end soon, which will boost demand for steel.
As of July 17, HRC futures prices at Shanghai Futures Exchange (SHFE) are standing at RMB 3,752/mt ($536/mt), up RMB 55/mt ($13.0/mt) or 1.5 percent from RMB 3,697/mt on July 10.
$1 = RMB 7.0043