During the week ending November 28, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have edged down slightly 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 $570-600/mt, down $5/mt on average compared to November 21.
| Specification (mm) | Category | Average price (RMB/mt) | Weekly change (RMB/mt) | Price ($/mt) |
Weekly change ($/mt) |
| 0.476 x 1,000 | CGCC | 4,757 | -7 | 672 | -1 |
| 0.426 x 1,000 | CGCC | 4,917 | -7 | 695 | -1 |
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 down slightly amid the sluggish demand from downstream users. Inventories of PPGI have been at relatively low levels, bolstering prices to a certain degree. Meanwhile, iron ore prices have risen over the past week, providing support for PPGI prices from the cost side. However, coke prices are likely to see declines from December 1, which might negatively affect PPGI prices. It is thought that PPGI prices in the Chinese domestic market will continue their downtrend in the coming week.
As of November 28, HRC futures at Shanghai Futures Exchange are standing at RMB 3,302/mt ($465/mt), increasing by RMB 32/mt ($4.5/mt) or 1.0 percent since November 21, while rising by 0.27 percent compared to the previous trading day, November 27.
$1 = RMB 7.0789
