UTC+8 ( BJT)

NDRC: China’s bulk commodity prices to stabilize

ABSTRACT

China has the solid foundation to maintain stability in the consumer goods and industrial materials prices, Meng Wei, spokesperson of the country’s National Development and Reform Commission (NDRC), commented on April 19 at the press conference on the first-quarter domestic economic performance.

NDRC's comment was shortly after the remarks by the National Bureau of Statistics last Friday, and in a similar definite tone, Mysteel Global noted.

“Recently, bulk commodities price increases and signs of inflation globally have grabbed the attention, which are probably due to various factors including global economic recovery, temporary imbalance in demand and supply, rich capital and speculation in the market, which are rather temporary and more like corrections,” Meng commented in answer to the media inquiry.

However, “the global economy is still unsteady and unbalanced, and bulk commodities have not shown any changes in structure or in trend, so bulk commodities prices lack the basis for a long-time strengthening,” she analyzed.

As for China, now immersed deeply in the global economy, its commodities prices will surely be influenced by the exterior environment, but such impacts are limited and within control, she commented.

“We (China) have our large domestic market, our economy has the resilience and potential, and we are accelerating in building up our own new development model for a better circulation in industries, markets, and demand and supply,” she added.

As for industrial goods, the prices will be stable in general and in the coming months, as China is with the sufficient production capacity, abundant supply, and enough market competition, she projected.

At the press conference, Meng shared more details regarding China’s economic performance for the first quarter, disclosing that NDRC approved 16 fixed asset investment (FAI) projects or valuing Yuan 45.4 billion ($7 billion) in total mainly in transportation, energy and high-technology industries.

Over January-March, 22 provinces, regions, and municipalities posted over 20% on-year growths in their FAIs, and for power consumption both for citizens and industries, 14 provinces, regions and municipalities posted over 20% on-year rises with five including Hubei, Tibet, Zhejiang, Guangdong and Yunnan scoring over 30% on-year growths in power consumption, all being above the country’s average 19.4% on-year growth.

All the data have confirmed a continuing and steady progress for the Chinese economy to return to the normal track, she commented.

In the first quarter, China’s gross domestic product grew 18.3% on year, as reported.

Written by Hongmei Li, li.hongmei@mysteel.com