China's PPI same as June's figure

China’s PPI same as June’s figure

China's producer price index (PPI) remained unchanged at a year-low in July as the slight rise in steel costs offset the impact of increases in fuel prices. China's National Bureau of Statistics (NBS) disclosed that the country's PPI rose 5.2 percent in July from a year earlier, matching the increase reported in June. Government restrictions on property development and rising output have been helping to curb rising prices. The slowdown in producer prices is welcome relief for manufacturers, many of whom have seen their profit margins eroded by soaring raw material costs and increasing competition. Furthermore, economists expect the 2.1 percent revaluation of the yuan against the dollar will help reduce the cost of imported raw materials that are priced in US currency in coming months. As for steel, the NBS indicates that prices of steel rod, which are used in construction sector, rose 1.9 percent last month. This is a marked decline from the 4.3 percent rise in June. In addition, the cost of steel plates increased 8.1 percent following an 8.9 percent rise in June. Meanwhile, construction steel prices fell 8.5 percent in the first half, according to the China Price Information Network. The price of cold rolled steel sheets, which are used in car bodies and home appliances, dropped 7.1 percent during the same period. Economists expect the 2.1 percent revaluation in Yuan against the US Dollar will help reduce the cost of imported raw materials that are priced in the US currency in coming months.