During the week ending April 24, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have edged up slightly compared to April 17, while transaction activity in the domestic market has been at low-to-medium levels.
Offer prices of ex-China PPGI have been heard between $620-635/mt, rising by $2.5/mt on average compared to that recorded on April 17.
Average PPGI prices in the local Chinese market are presented in the following table.
| Specification (mm) | Category | Average price (RMB/mt) | Weekly change (RMB/mt) | Price ($/mt) |
Weekly change ($/mt) |
| 0.476 x 1,000 | CGCC | 4,790 | 27 | 698 | 4 |
| 0.426 x 1,000 | CGCC | 4,950 | 27 | 721 | 4 |
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 amid the increasing trend in raw material prices. Meanwhile, inventories of PPGI continued the decreasing trend, standing at relatively low level over the past three years, which bolstered its prices firmly. Chinese steelmaker Beijing Shougang Co.,Ltd. has decided to raise its local base prices by RMB 100/mt for pre-painted galvanized iron (PPGI), for delivery in May, exerting a positive impact on market sentiments. Moreover, following the second round of hike in coke prices, the third round of hike is likely to be implemented next week, which will provide certain support to PPGI market from cost side. It is thought that PPGI prices in the Chinese domestic market may increase further in the coming week.
As of April 24, HRC futures at Shanghai Futures Exchange are standing at RMB 3,392/mt ($494/mt), increasing by RMB 68/mt ($10/mt) or 2.0 percent since April 17, while decreasing by 0.15 percent compared to the previous trading day, April 23.
$1 = RMB 6.8674
