3.6% PPI Drop in June! China’s Key Industrial Prices Slide Further, Chemicals Hit Hard

China’s latest statistics reveal a continued downward trend in industrial prices, with the Producer Price Index (PPI) falling 0.4% month-on-month in June—the same pace as May—and sliding 3.6% year-on-year, a sharper drop by 0.3 percentage points. Producer purchase prices declined even more, down 4.3% from last year and 0.7% compared to May.

Industry-specific data show mixed signals. Oil and gas extraction prices rose 2.6% month-on-month but plummeted 12.6% year-on-year. The petroleum, coal, and other fuel processing sector saw a 0.6% monthly drop, tumbling 13.5% from a year earlier. The chemical raw materials and products industry slipped 0.7% from May and was down 6.1% year-on-year. Chemical fiber manufacturing edged up 0.1% but remained 7.7% below last year’s level, while rubber and plastics fell 0.3% month-on-month and 2.2% year-on-year.

On the purchasing side, fuel and power prices nosedived 10.4% from May, down 2.0% compared to last year. Chemical raw materials slid 6.2% monthly and 0.7% annually. Textile materials dropped 2.4% on the month and 0.1% on the year.

For the first half of 2025, the trend persisted: oil and gas extraction prices fell 9.6% year-on-year, fuel processing fell 9.8%, chemicals dropped 4.4%, chemical fibers were down 5.6%, and rubber and plastics slipped 1.7%. The persistent decline underscores ongoing pressures across China’s industrial value chain.