During the week ending June 12, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have decreased compared to June 5 amid the fluctuating trend in HRC futures prices, while transaction activity in the domestic market has been at low-to-medium levels.
Offer prices of ex-China PPGI have been heard between $635-650/mt, remaining stable on average compared to that recorded on June 5.
Average PPGI prices in the local Chinese market are presented in the following table.
| Specification (mm) | Category | Average price (RMB/mt) | Weekly change (RMB/mt) | Price ($/mt) |
Weekly change ($/mt) |
| 0.476 x 1,000 | CGCC | 4,783 | -40 | 702 | -5 |
| 0.426 x 1,000 | CGCC | 4,943 | -40 | 726 | -5 |
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 amid the slack demand from downstream users. Bearish sentiments prevailed among market players, leading to the increasing inventory levels. Traders chose to sell at lower prices, aiming to bring in cash and reduce the inventories. Iron ore prices have seen slight declines, weakening the support to PPGI prices from cost side. Meanwhile, since the rainy season is approaching, demand for PPGI is expected to slacken in the coming period. It is expected that PPGI prices in the Chinese domestic market will edge down further in the coming week.
As of June 12, HRC futures at Shanghai Futures Exchange are standing at RMB 3,379/mt ($496/mt), decreasing by RMB 2/mt ($0.3/mt) since June 4, while increasing by 0.42 percent compared to the previous trading day, June 11.
$1 = RMB 6.8109
