Prices of Productive Materials Pick up

Prices of productive materials in China, which have been falling for more than a year and a half, picked up in March, edging up 0.4 percent on an annual basis, said the State Administration of Internal Trade (SAIT).

Figures released by SAIT Wednesday indicate that growth of demand for 19 major productive materials in the first quarter this year exceeded that of supply for the first time in years.

Total sales of productive materials during the period amounted to 1.05 trillion yuan, surging 13.7 percent year-on-year. At the same time, export of major productive materials including steel, coal, and non-ferrous metal increased by two-thirds.

Prices of petroleum products increased markedly in March, surging 27.1 percent on an annual basis, while prices of steel, coal, and machinery continued to decline.

Analysts from SAIT said the rapid growth of export of productive materials, which exceeded 40 percent in first quarter, will not last long. Total supply of products still outstrips demand.

Sales of productive materials this year is expected to reach 4. 9 trillion yuan, with prices going up three percent over that of last year.

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