China PPI MoM Growth Continued to Decline

SHANGHAI, Feb 16 - In January, the prices of coal and steel fell, driving the overall price of industrial products to fall.

PPI fell by 0.2% MoM, a decrease of 1.0 percentage point from the previous month. In this range, the prices of means of production fell by 0.2%, a decrease of 1.4 percentage points from the previous month; the prices of means of living remained unchanged. The policy of ensuring supply and stabilizing prices was vigorously promoted. The prices of coal and steel continued to fall, the prices of coal mining and washing industries fell by 3.5%, and the prices of ferrous metal smelting and rolling processing industries fell by 1.9%. Influenced by the rebound in international crude oil prices, the prices of domestic oil-related industries rebounded as well. The price of oil and natural gas exploration changed from a decrease of 6.9% in the previous month to an increase of 2.6%; the prices of chemical raw materials and chemical products manufacturing, and chemical fiber manufacturing decreased by 1.3% and 0.1% respectively, and their decline rate was 0.8 and 3.0 percentage points lower than that of the previous month. The prices of non-ferrous metals in the international market have risen sharply, pushing the prices of domestic non-ferrous metal smelting and rolling processing industry to rise by 0.8% In addition, the price of non-metallic mineral products industry decreased by 1.8%; the price of electricity and heat production and supply industry increased by 2.5%, and the price of food manufacturing industry increased by 0.3%.

PPI rose by 9.1% YoY, an increase of 1.2 percentage points from the previous month. In this industry, the prices of means of production rose by 11.8%, a decrease of 1.6 percentage points from the growth rate; the livelihood commodity prices increased by about 0.8 percentage points, a decrease of 0.2 percentage point from previous month.. In all the 40 major industrial sectors we surveyed, 36 of them saw price increases, 1 less than last month. Among the major industries, there were several industries undergoing decrease in growth rate: coal mining and washing industry, up 51.3%, down 15.5 percentage points; oil and gas extraction industry, up 38.2%, down 7.4 percentage points; petroleum, coal and other fuel processing industries up 30.1%, down 6.3 percentage points; non-ferrous metal smelting and rolling processing industry rose 19.8%, down 0.2 percentage points; ferrous metal smelting and rolling processing industry rose 14.7%, down 6.7 percentage points. There are also industries undergoing price expansion: electricity and heat production and supply industry increased by 7.7%, an increase of 2.9 percentage points; food manufacturing industry increased by 4.6%, an increase of 0.4 percentage points; textile and apparel industry increased by 1.1%, an increase of 0.5 percentage points.