According to data released by the China Federation of Logistics and Purchasing (CFLP) on March 5, China’s Bulk Commodity Price Index (BCPI) reached 112.6 points in February, marking a 1.3% month-on-month increase and a 1.1% year-on-year rise. This upward trend reflects a steady recovery in the bulk commodity market, driven by improved demand and optimistic business expectations.
Sector Performance Breakdown
Agricultural Products: The Agricultural Price Index rose to 96.3 points, up 3.5% month-on-month, indicating strong growth in consumer demand.
Nonferrous Metals: The Nonferrous Metals Price Index rebounded to 128.6 points, increasing 2% month-on-month and 9.5% year-on-year, signaling recovery in manufacturing and construction sectors.
Energy: The Energy Price Index slightly declined to 104.5 points, down 2.3% month-on-month and 10.2% year-on-year, reflecting fluctuations in global energy markets.
Minerals: The Mineral Price Index continued to drop, reaching 77.4 points, while the Ferrous Metals Price Index stabilized at 80.6 points, showing signs of market bottoming out.
Chemicals: The Chemical Price Index saw a modest increase, reaching 110.1 points.
Key Highlights
Agricultural Products: Prices have risen for two consecutive months, driven by robust consumer demand.
Nonferrous and Ferrous Metals: The rebound in these sectors points to a gradual recovery in manufacturing and construction activities.
Price Trends: Among the 50 major commodities monitored by CFLP, 25 (50%) saw price increases, 24 (48%) experienced declines, and 1 remained unchanged.
Top Gainers: Soybean meal (+18.7%), caustic soda (+8.3%), and praseodymium-neodymium oxide (+7.1%).
Top Decliners: Coke (-8.9%), cement (-5%), and coking coal (-3.6%).
Market Analysis
The rise in the BCPI, particularly after the Spring Festival, reflects improved production resumption and rebounding downstream demand. This performance surpasses previous years’ levels and indicates optimistic business expectations and a steady recovery in China’s bulk commodity market. Looking ahead, the implementation of policies aimed at expanding domestic demand and stabilizing investments is expected to further consolidate China’s economic stability and growth.