During the week ending June 5, average prices of pre-painted galvanized iron (PPGI) in the Chinese domestic market have remained stable compared to May 29 against a backdrop of just a slight change 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 at $635-650/mt, moving sideways on average compared to May 29.
Average PPGI prices in the local Chinese market are presented in the following table.
| Specification (mm) | Category | Average price (RMB/mt) | Weekly change (RMB/mt) | Price ($/mt) |
Weekly change ($/mt) |
| 0.476 x 1,000 | CGCC | 4,823 | - | 707 | - |
| 0.426 x 1,000 | CGCC | 4,983 | - | 731 | - |
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 moved sideways amid a slight change in HRC futures prices. Due to the traditional off-season, demand for PPGI has been slack, exerting a negative impact on prices. High temperatures have negatively affected construction activities, resulting in slow inventory consumption. Cautious sentiments prevail among market players, which may lead to rising inventories. It is thought that PPGI prices in the Chinese domestic market will soften in the coming week.
As of June 5, HRC futures at Shanghai Futures Exchange are standing at RMB 3,381/mt ($496/mt), decreasing by RMB 1/mt ($0.15/mt) since May 29, while down 0.15 percent compared to the previous trading day, June 4.
$1 = RMB 6.8157
