During the week ending December 18, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have risen 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 |
6,430 |
+84 |
984 |
+14 |
|
0.426 x 1,000 |
CGCC |
6,550 |
+84 |
1,003 |
+14 |
13 percent VAT is included in all prices and all prices are ex-warehouse.
During the given week, PPGI prices have moved up significantly amid surging iron ore prices and increasing HRC futures prices. At the same time, major Chinese steelmaker Baosteel has raised its ex-works prices for PPGI by RMB 500/mt ($76.5/mt) for January, providing support for PPGI prices in the market. Currently, inventory of PPGI is relatively low, bolstering prices. It is thought that PPGI prices in the Chinese domestic market will likely edge up in the coming week.
As of December 18, HRC futures prices at Shanghai Futures Exchange (SHFE) are standing at RMB 4,609/mt ($706/mt), up RMB 284/mt ($43.5/mt) or 6.57 percent from RMB 4,325/mt on December 11.
$1 = RMB 6.5315