China’s bulk commodity price index up 3% in May

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The index tracking China’s bulk commodity prices increased for three consecutive months in May, reaching 118.9 with a month-on-month increase of 3%, according to data released by the China Federation of Logistics and Purchasing (CFLP) on Wednesday.

In terms of industries, the price indexes for non-ferrous metals, ferrous metals, chemical products, and energy products have all shown month-on-month increases.

Notably, the price index for non-ferrous metals has experienced a continuous three-month rise, reaching a nearly 24-month high. Similarly, the price index for chemical products has seen a consecutive five-month increase, reaching its highest level so far this year.

Out of the 50 key product types monitored by the federation, prices for 30 of them witnessed an increase in May.

According to analysis, there was an increase in the number of industries reporting growth in their bulk commodity price indexes, indicating a stable overall performance in the bulk commodity market and further consolidation of a stable and positive trend of the Chinese economy.

Despite the overall positive trends, it is worth noting that certain industries still grapple with challenges such as insufficient market demand, low circulation efficiency, high costs, and persistent issues such as difficulties and high costs in financing for small and medium-sized enterprises.

These factors underscore the importance of further strengthening and consolidating the endogenous drivers of economic growth.

“Hence, it is of utmost importance for the government to significantly strengthen counter-cyclical and cross-cyclical adjustments of macro policies, particularly in leveraging the positive impact of government investments in driving business orders, production, and investment,” said Zhang Liqun, research fellow at the Development Research Center of the State Council.

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