According to recent industrial data, China’s bulk commodity market has experienced improving fundamentals, as sales and demand rebounded in March. The China Federation of Logistics and Purchasing reported that the China Bulk Merchandise Index, which measures domestic bulk commodity market growth, reached its highest level since August 2020, standing at 103.4% in March, up 0.6 percentage points from February.
The sub-indices for bulk commodity supply and sales increased from the previous month, while the sub-index for inventory decreased, indicating a positive trend in the domestic commodity market. The readings above 100 indicate expansion, while those below 100 reflect contraction.
The federation anticipates a stable and optimistic outlook for the domestic commodity market, with more room for commodity prices to rise in April. This positive growth in the bulk commodity market is a sign of economic recovery in China, after the pandemic-induced slowdown, and is a promising indicator of increasing production and consumption in the country.
The rising demand for bulk commodities in China is essential for the overall economic growth of the country, as it supports various industries such as construction, manufacturing, and transportation. With China’s focus on infrastructure development, the growth of the bulk commodity market is expected to continue, contributing significantly to the country’s economy.