During the week ending May 15, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have continued their uptrend compared to May 8, while transaction activity in the domestic market has been at low-to-medium levels.
Offer prices of ex-China PPGI have been heard at $635-650/mt, rising by $10/mt on average compared to May 8.
Average PPGI prices in the local Chinese market are presented in the following table.
| Specification (mm) | Category | Average price (RMB/mt) | Weekly change (RMB/mt) | Price ($/mt) |
Weekly change ($/mt) |
| 0.476 x 1,000 | CGCC | 4,873 | 17 | 712 | 2 |
| 0.426 x 1,000 | CGCC | 5,033 | 17 | 736 | 2 |
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 increased amid strong support from firm raw material prices, which have softened in the given period, though the previous big rises in raw material prices still provide solid support. Inventories of PPGI have seen slight decreases, exerting a positive impact on prices. The demand for PPGI is expected to be stable in the coming period as the good season for construction activities continues. It is thought that PPGI prices in the Chinese domestic market will likely indicate slight increases in the coming week.
As of May 15, HRC futures at Shanghai Futures Exchange are standing at RMB 3,446/mt ($507/mt), decreasing by RMB 27/mt ($4/mt) or 0.8 percent since May 8, while down 0.69 percent compared to the previous trading day, May 14.
$1 = RMB 6.8415
