China industry shows growth amid commodity price instability
Updated 20:59, 30-Jun-2018
By CGTN’s Chen Tong
["china"]
01:57
Amid the uncertainties of global political and trade conflicts that have shaken the prices of gold and some ferrous metals, China's industrial sector seems to be serenely carrying on.
"Since the beginning of the year value-added data for industrial sectors, especially high-end technology companies, has still been growing significantly,” said Liu Xuezhi, a senior analyst at China's Bank of Communications.
“Some upgrading industries or high-end equipment and new technology industries may be affected by the trade conflicts. But domestic policies which support those industries are giving the companies strong backing."
VCG Photo

VCG Photo

During the past weeks, futures prices for some industrial goods including rebar, copper, hard coke and coking coal have seen steady declines. Crude oil is far from the only commodity newly subject to price turbulence since the US is pushing allies to cut oil imports from Iran. 
Experts believe that trend won't last long as the demand for these raw materials is steadily increasing. 
“You need to keep in mind the relationship between supply and demand for those industrial products. Since last year, the global economy has been recovering and the demand for industrial products from countries including China has been increasing too. So it's very unlikely we will see significant declines in the prices for these commodities,” said Sun Yonggang, the department manager of Chaos Ternary Futures.
Despite the short-term price declines recently, commodity prices still saw year-on-year increases in May. Data from the China Logistics Information Center shows that commodity prices grew by some 7 percent year-on-year from January to May.