The China Federation of Logistics and Purchasing released the July China Commodity Price Index today (5th). Based on the index's performance, the commodity price index experienced a slight month-on-month decline while maintaining a substantial year-on-year increase, with the overall market foundation remaining stable.

In July, the China Commodity Price Index stood at 128.6 points, a 1.3% decrease from the previous month but a 15.5% rise compared to the same period last year. Among the 50 key commodities monitored by the Federation, 14 saw price increases month-on-month in July. Notably, coke, praseodymium neodymium oxide, and corrugated paper led the gains, with month-on-month rises of 7.1%, 6.4%, and 5.6%, respectively.

By sector, price indices for chemicals, ferrous metals, and minerals all declined month-on-month, influenced by a retreat in international oil prices, the traditional off-season for demand, and extreme weather conditions such as high temperatures, heavy rainfall, and typhoons. In contrast, the agricultural product price index edged up slightly month-on-month, as some varieties faced supply constraints due to rainy weather.

Experts noted that the month-on-month drop in the commodity price index in July stemmed from both the decline in international crude oil and other commodity prices from elevated levels, as well as seasonal adjustments linked to domestic high temperatures, heavy rain, and the traditional off-season. Amid a complex and volatile international landscape and insufficient effective demand in some domestic sectors, businesses remain generally optimistic about the future, with new growth drivers continuing to expand.

The 15.5% year-on-year increase in the commodity price index also indicates that the overall operational foundation of China's commodity market remains solid. The month-on-month decline is more attributable to structural adjustments, and the fundamental long-term positive trend remains unchanged.