During the week ending December 26, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have remained stable compared to the previous week, while transaction activity in the domestic market has been at low-to-medium levels.
Offer prices of ex-China PPGI have been heard between $550-590/mt, remaining stable on average compared to that recorded on December 19.
Average PPGI prices in the local Chinese market are presented in the following table.
| Specification (mm) | Category | Average price (RMB/mt) | Weekly change (RMB/mt) | Price ($/mt) |
Weekly change ($/mt) |
| 0.476 x 1,000 | CGCC | 4,740 | - | 674 | - |
| 0.426 x 1,000 | CGCC | 4,900 | - | 696 | - |
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 sideways amid the negative impact from the relatively high supplies and certain support from the increasing HRC prices. Inventories of PPGI decreased in the given week, while still standing at high levels over the past three years. Coke prices are expected to decrease further in the coming week, which will exert a negative impact on PPGI prices from the cost side. Since the New Year holiday is approaching, the demand for PPGI from downstream users might slacken. However, commodity prices have seen big rises, which might bolster market sentiments to a certain degree. It is thought that PPGI prices in the Chinese domestic will remain stable in the coming week.
As of December 26, HRC futures at Shanghai Futures Exchange are standing at RMB 3,283/mt ($466/mt), increasing by RMB 14/mt ($2/mt) or 0.4 percent since December 19, while declining by 0.06 percent compared to the previous trading day, December 25.
$1 = RMB 7.0358
