During the week ending June 26, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have seen declines compared to June 12 amid sluggish demand, while transaction activity in the domestic market has been at low-to-medium levels.
Offer prices of ex-China PPGI have been heard at $605-645/mt, down $17.5/mt on average compared to June 12.
Average PPGI prices in the local Chinese market are presented in the following table.
| Specification (mm) | Category | Average price (RMB/mt) | Weekly change (RMB/mt) | Price ($/mt) |
Weekly change ($/mt) |
| 0.476 x 1,000 | CGCC | 4,757 | -27 | 698 | -4 |
| 0.426 x 1,000 | CGCC | 4,917 | -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 indicated declines amid sluggish demand from downstream users. Recently, the widespread rainy weather has exerted a negative impact on the demand for PPGI. Cautious sentiments have prevailed among market players, resulting in some sellers selling at lower prices, aiming to bring in cash and reduce inventories. After a few sunny days, another round of heavy rainfall is going to hit China, which will weaken the support for PPGI prices. It is thought that PPGI prices in the Chinese domestic market will fluctuate within a limited range in the coming week.
As of June 26, HRC futures at Shanghai Futures Exchange are standing at RMB 3,316/mt ($486/mt), decreasing by RMB 63/mt ($9.2/mt) since June 12, while down 0.18 percent compared to the previous trading day, June 25.
$1 = RMB 6.8166
