The Ex-Factory Price of China’s Chemical Raw Materials and Chemical Products In November Fell by 6.8% Year-On-Year

Data released by the National Bureau of Statistics of China on December 9 showed that in November, affected by factors such as the fall in international oil prices and weak market demand for some industrial products, the national PPI turned from flat to falling month-on-month, and the year-on-year decline expanded.

In November 2023, the ex-factory price of industrial producers in China fell by 3.0% year-on-year and 0.3% month-on-month; the purchasing price of industrial producers fell by 4.0% year-on-year and 0.3% month-on-month. Among them, the ex-factory price of chemical raw materials and chemical products manufacturing industry fell by 6.8% year-on-year and 0.9% month-on-month; the price of chemical raw materials fell by 6.3% year-on-year and 0.8% month-on-month.

From a month-on-month perspective, PPI fell by 0.3% from unchanged last month. The decline in international oil prices has driven down prices in China's domestic oil and natural gas mining industry, petroleum coal and other fuel processing industries by 2.8% and 2.5% respectively. The total impact on the PPI fell by about 0.13 percentage points month-on-month, accounting for more than 40% of the total decline. Prices in the non-ferrous metal smelting and rolling processing industry fell by 0.1%, of which copper smelting prices increased by 0.4% and aluminum smelting prices fell by 0.2%. The demand for coal and natural gas increased seasonally, with prices in the gas production and supply industry rising by 1.4% and prices in the coal mining and washing industry rising by 0.3%. The construction of major projects progressed steadily, cement manufacturing prices increased by 1.4%, and ferrous metal smelting and rolling processing industry prices increased by 1.1%. In the equipment manufacturing industry, lithium-ion battery manufacturing prices fell by 1.7%, and prices in computer communications and other electronic equipment manufacturing and automobile manufacturing industries both fell by 0.2%. In addition, prices in the agricultural and sideline food processing industry fell by 0.8%, and prices in the electricity and heat production and supply industry fell by 0.7%; prices in the food manufacturing industry remained unchanged.

From a year-on-year perspective, PPI fell by 3.0%, an increase of 0.4 percentage points from the previous month. Among the major industries, prices in the oil and natural gas mining industry dropped by 3.3% from an increase of 1.7% last month; prices in the coal mining and washing industry, non-metallic mineral products industry, petroleum coal and other fuel processing industry prices fell 6.3% to 15.8%.

the declines all expanded; the prices of chemical raw materials and chemical products manufacturing, ferrous metal smelting and rolling processing industries fell by 6.8% and 2.3% respectively, and the declines all narrowed. In the equipment manufacturing industry, lithium-ion battery manufacturing prices fell by 11.6%, computer communications and other electronic equipment manufacturing prices dropped by 3.5%, and automobile manufacturing prices dropped by 1.6%. Prices in the culture, education, industry, beauty, sports and entertainment goods manufacturing industry increased by 4.3%, prices in the non-ferrous metal smelting and rolling processing industry increased by 1.7%, and prices in the pharmaceutical manufacturing industry increased by 0.7%.

On average from January to November, the ex-factory price of industrial producers fell by 3.1% compared with the same period last year, and the purchasing price of industrial producers fell by 3.6%. Among them, the ex-factory price of chemical raw materials and chemical products manufacturing industry fell by 9.3% year-on-year, and the price of chemical raw materials fell by 8.5% year-on-year.