Anti-Overwork Measures Show Results, PPI Shifts from Decline to Stability; Plastics See Narrow Fluctuations Today

Regarding this, Dong Lijuan stated that the main characteristics of the month-on-month change in the PPI this month are: first, the improvement in supply and demand relations caused prices in some energy and raw material industries to shift from decline to increase; second, the impact of imported factors led to a month-on-month decline in domestic prices in the petroleum and some non-ferrous metal industries.

Data shows that international non-ferrous metal prices are fluctuating at high levels, with domestic non-ferrous metal smelting and rolling processing industry prices rising by 0.2%, a decrease of 0.6 percentage points compared to the previous month. Among them, gold smelting and aluminum smelting prices both increased by 0.2%, while copper smelting prices decreased by 1.1%. The decline in international oil prices has led to a decrease in domestic petroleum extraction and refined petroleum product manufacturing prices by 1.4% and 0.6%, respectively.

In August, the Producer Price Index (PPI) fell by 2.9% year-on-year, with the decline narrowing by 0.7 percentage points compared to the previous month. This is the first time the decline has narrowed since March this year.

Dong Lijuan stated that, in addition to the impact of a lower base in the same period last year, China has intensified the implementation of more proactive macroeconomic policies, resulting in positive changes in some industry prices. The continuous optimization of domestic market competition order has led to a narrowing of the year-on-year decline in prices for related industries. The in-depth advancement of the national unified market construction has curbed disorderly competition among enterprises, orderly progress in capacity management of key industries, and a narrowing of the year-on-year decline in prices for related industries.

Data shows that in August, the year-on-year decline in prices for coal processing, ferrous metal smelting and rolling processing, coal mining and washing, photovoltaic equipment and components manufacturing, and new energy vehicle manufacturing narrowed by 10.3, 6.0, 3.2, 2.8, and 0.6 percentage points respectively compared to the previous month. The downward impact on the year-on-year PPI decreased by approximately 0.50 percentage points compared to the previous month, which is the main reason for the narrowing of the year-on-year decline in the PPI.

With the robust growth of emerging industries, deep integration of technological and industrial innovation, and the enhancement of green development efficiency, the prices in related industries have seen a year-on-year increase. The price of integrated circuit packaging and testing series rose by 1.1%, ship and related equipment manufacturing prices increased by 0.9%, communication system equipment manufacturing prices rose by 0.3%, and solid waste treatment equipment prices increased by 0.3%. The prices for electronic special materials manufacturing and intelligent unmanned aerial vehicle manufacturing, which declined by 1.6% and 0.5% respectively last month, have stabilized. The price decline in the comprehensive utilization of waste resources industry has narrowed by 5.4 percentage points.

In addition, the increase in demand for upgraded consumption has driven the prices in certain industries to rise year-on-year. The prices for the manufacturing of arts and crafts and ceremonial products rose by 13.0%, sports balls by 4.7%, Chinese musical instruments by 1.6%, nutritional foods by 0.9%, special sports equipment and accessories by 0.4%, and health foods by 0.3%.