During the week ending March 13, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have moved up compared to March 6, while transaction activity in the domestic market has been at low-to-medium levels.
Offer prices of ex-China PPGI have been heard at $605-630/mt, up by $10/mt on average compared to March 6.
Average PPGI prices in the local Chinese market are presented in the following table.
| Specification (mm) | Category | Average price (RMB/mt) | Weekly change (RMB/mt) | Price ($/mt) |
Weekly change ($/mt) |
| 0.476 x 1,000 | CGCC | 4,747 | +17 | 688 | +3 |
| 0.426 x 1,000 | CGCC | 4,907 | +17 | 713 | +3 |
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 amid increasing HRC futures prices. Market sentiments have improved as the weather gets warmer. Major Chinese steelmaker Baosteel has hiked its local base prices by RMB 200/mt ($29/mt) for PPGI for delivery in April, exerting a positive impact on the PPGI market. The demand for PPGI from downstream users is still recovering while the war in the Middle East has dampened market confidence somewhat. Iron ore prices have risen amid possible decreasing supply due to the anticipated strike at BHP Pilbara’s mines and China Mineral Resources Group’s notice to major Chinese steel mills that they will have to stop accepting delivery of BHP Billiton Newman fines from late next week, which will bolster iron ore prices in the coming period. It is expected that PPGI prices in the Chinese domestic market will indicate a rebounding trend in the coming week.
As of March 13, HRC futures at Shanghai Futures Exchange are standing at RMB 3,295/mt ($477.5/mt), increasing by RMB 65/mt ($9.4/mt) or 2.0 percent since March 6, while rising by 0.52 percent compared to the previous trading day, March 12.
$1 = RMB 6.9007
