January Prices of Chemical Products Rise 9.2% YoY

China’s PPI for January 2017 was up 0.8% MoM and up 6.9% YoY, according to the National Bureau of Statistics of China.
By sector, product prices shot up 58.5% YoY in the petroleum and natural gas exploration and production sector, jumped 38.4% YoY in the coal mining and washing sector, soared 37.7% YoY in the ferrous metal smelting and rolling sector, rose 24.4% YoY in the petroleum processing sector, increased 17.3% YoY in the non-ferrous metal smelting and rolling sector, and rose 9.2% YoY in the chemical sector. The increases were respectively 38.8, 4.4, 2.7, 7.8, 0.2 and 2.6 percentage points greater than the YoY increases in December 2016.
Month-on-month, prices rose 2.1% MoM in the ferrous metal smelting and rolling sector, increased 1.8% MoM in the chemical sector, gained 1.7% MoM in the coal mining and washing sector and rose 0.1% MoM in the non-ferrous metal smelting and rolling sector. However, monthly growth decelerated, down respectively 5.9, 0.7, 1.7 and 2.3 percentage points from MoM increases of December 2016. Due to rising international oil prices, product prices grew in the petroleum and natural gas exploration and production sector and in the petroleum processing sector, up 10.4% MoM and 3.9% MoM, respectively.