During the week ending December 5, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have seen slight declines 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 between $560-600/mt, down $5/mt on average compared to that recorded on November 28.
| Specification (mm) | Category | Average price (RMB/mt) | Weekly change (RMB/mt) | Price ($/mt) |
Weekly change ($/mt) |
| 0.476 x 1,000 | CGCC | 4,750 | -7 | 671 | -1 |
| 0.426 x 1,000 | CGCC | 4,910 | -7 | 694 | -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 indicated slight declines amid increasing capacity utilization rates on the producers’ side. Meanwhile, demand for PPGI has been sluggish, resulting in slow inventory consumption and relatively high inventory levels, which exerted a negative impact on prices. Traders are cautious as regards the future prospects for the PPGI market, which weakens the support for prices. It is thought that PPGI prices in the Chinese domestic will likely fluctuate within a limited range in the coming week.
As of December 5, HRC futures at Shanghai Futures Exchange are standing at RMB 3,320/mt ($469/mt), increasing by RMB 18/mt ($2.5/mt) or 0.5 percent since November 28, while remaining stable compared to the previous trading day, December 4.
$1 = RMB 7.0749
