According to the economy situation analysis issued by NDRC on the 23rd, it is forecasted that in the fourth season, domestic capital goods price will keep high level as a whole. In whole year capital goods price in distribution sectors will rise by about 4% over ther same period of the previous year.

Since the beginning of this year, generally, capital goods price trend is “stabile, rising, falling, rising again”. From January to September, domestic capital goods price monthly rose by 7%, 6%, 5.3%, 4%, 2.4%, 0.7%, 1.9%, 3.3% and 4% over ther same period of the previous year. Between January and September, domestic capital goods price in distribution sectors accumulatively rise by 3.6% and is higher by 1.1% over ther same period of the previous year. Monitoring from China Distribution Logistics Information Center suggests that, considering from monthly markup, the markup decreased monthly in the first half year but it rose since the beginning of the third season.

NRDC thinks that steel and cement price increase is the major factor that impacts price trend of capital goods from January to September. From January to September, average price of domestic four major kinds of steel products is 4,110 yuan per ton that rises by 366 yuan over ther same period of the previous year and its markup is 9.8%. Electrolysis copper average price rises by 2,249 yuan per ton and markup is 3.7%. Average prices of ordinary silicate cement grade 42.5 and grade 32.5 are 343.1 yuan and 312.9 yuan per ton, rise 3.8 yuan and 7.8 yuan and their markup are 1.1% and 2.6% respectively.
 
NDRC thinks the following factors push this year capital goods price increase. Firstly, international market demand is very strong so capital goods prices keep rising and pull export quantity great increase of domestic capital goods like steel products. Secondly, continuous increase of domestic fixed assets investment supports market demand to building steel products, cement and non-ferrous metals; Thirdly foundational raw material price rises. Since the beginning of this year, price dramatic rise of raw materials such as iron ore, waste steel and coke lead to iron and steel production cost increase and push steel product price rise. Another side, crude oil price rise in international market also push relevant domestic chemical industrial products price rise.