During the week ending August 15, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have seen further increases 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 at $620-640/mt, moving up by $12.5/mt on average compared to August 8.
| Specification (mm) | Category | Average price (RMB/mt) | Weekly change (RMB/mt) | Price ($/mt) |
Weekly change ($/mt) |
| 0.476 x 1,000 | CGCC | 4,917 | 33 | 689 | 5 |
| 0.426 x 1,000 | CGCC | 5,093 | 33 | 714 | 5 |
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 edged up slightly as several Chinese steelmakers raised their ex-works prices for PPGI by RMB 200/mt ($28/mt) for delivery in September. HRC futures prices have indicated slight increases, exerting a positive impact on the PPGI market. However, steelmakers’ production activities may be negatively affected due to the approach of the military parade on September 3, which will reduce the supply to the market and bolster the PPGI market. However, other construction activities may also be affected and may weaken the demand for PPGI. It is expected that PPGI prices in the Chinese domestic market will fluctuate within a limited range in the coming week.
As of August 15, HRC futures at Shanghai Futures Exchange are standing at RMB 3,439/mt ($482/mt), increasing by RMB 11/mt (1.5/mt) or 0.3 percent since August 8, while up 0.2 percent compared to the previous trading day, August 14.
$1 = RMB 7.1371
