Price surge continues in China’s bulk commodity market according to new data. The China Federation of Logistics and Purchasing released its March index on Sunday. China’s bulk commodity price index stood at 129.9 last month. This represents a 4 percent increase compared to February’s levels. Furthermore, the index rose 14.5 percent from the same period last year. Consequently, this price surge continues as enterprises ramp up production after the holidays.
The CFLP monitors 50 bulk commodities across various sectors. Among these, 38 commodities saw month-on-month price increases in March. Diesel recorded the largest gain among all monitored commodities. Specifically, diesel prices jumped 30.5 percent compared to the previous month. Methanol followed closely with a 30.4 percent increase month-on-month. Ethylene glycol rounded out the top three with a 29.3 percent gain. This price surge continues across both energy and chemical product categories.
External factors have driven much of this recent price movement. Continued tension in the Middle East has disrupted global supply chains. International crude oil prices have risen sharply as a result. Consequently, China’s domestic energy price index rose 16.5 percent month-on-month. The chemical price index climbed even higher at 21.8 percent. Meanwhile, international fertilizer prices have also increased substantially. Rising demand for biofuels has further pushed agricultural prices upward. As a result, the domestic agricultural product price index rose 2.8 percent. This price surge continues to affect multiple sectors simultaneously.
Analysts quoted in the China Media Group report provided detailed insights. They attributed the sharp March index rise to three main factors. First, the domestic bulk commodity market’s activity level has recovered steadily. Second, government policy effects are gradually manifesting across industries. Third, continued geopolitical tensions in the Middle East persist. These three factors combined to drive the current price surge continues trend. Analysts expect these pressures to remain in the near term.
Lin Boqiang, director of the China Center for Energy Economics Research, offered his perspective. He works at Xiamen University and studies energy markets extensively. Lin noted that international bulk commodity price fluctuations have intensified recently. Uncertainties surrounding imports of energy and chemical commodities have increased. These factors have pushed prices upward across multiple categories. Nevertheless, the impact on China’s macroeconomy remains relatively limited. This price surge continues but does not threaten overall economic stability.
Lin attributed China’s resilience to two key factors. First, China possesses strong energy resilience through diversified supply sources. Second, the effectiveness of government policies has helped stabilize markets. Together, these factors buffer the economy from external price shocks. However, Lin also offered important recommendations for the long term. Enterprises need to strengthen their risk assessment of external factors. They should broaden their sources of raw materials significantly. Utilizing substitute resources will also help reduce dependency. Finally, companies must enhance their ability to withstand market volatility. This price surge continues to serve as a warning for better preparation.
Market observers expect continued volatility in coming months. The Middle East situation remains unpredictable and tense. International crude oil prices could swing dramatically in either direction. China’s domestic policies will likely adjust to counter external pressures. Nevertheless, the underlying demand recovery appears genuine and sustainable. This price surge continues to reflect both real economic activity and geopolitical risks. Chinese enterprises would do well to heed Lin’s recommendations for diversification.
