During the week ending May 16, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have remained stable, 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 $595-605/mt, moving sideways on average compared to May 9.
| Specification (mm) | Category | Average price (RMB/mt) | Weekly change (RMB/mt) | Price ($/mt) |
Weekly change ($/mt) |
| 0.476 x 1,000 | CGCC | 4,870 | 17 | 677 | 2 |
| 0.426 x 1,000 | CGCC | 5,047 | 17 | 702 | 2 |
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 indicated slight rises amid improved market sentiments given that the reserve requirement ratio (RRR) cut for Chinese banks by 0.5 percentage points became effective as of May 15. However, inventory of PPGI has seen increases, signaling that demand is not as good as market players had expected. Some specifications of PPGI have been in short supply, bolstering prices to a certain degree. It is expected that PPGI prices in the Chinese domestic market will fluctuate within a limited range in the coming week.
As of May 16, HRC futures at Shanghai Futures Exchange are standing at RMB 3,226/mt ($445/mt), increasing by RMB 69/mt (9.6/mt) or 2.2 percent since May 9, while down 0.95 percent compared to the previous trading day, May 15.
$1 = RMB 7.1938
