Markets > Commodities

China to see stronger bulk commodity demand in Q2: federation

Xinhua News,BEIJING
2020-05-11 11:14

Already collect


BEIJING, May 11 (Xinhua) -- China's demand for bulk commodities is expected to continue growing in the second quarter of the year, as business resumption speeds up and supportive economic policies get further implemented, according to the China Federation of Logistics and Purchasing (CFLP).

There will be faster progress in development of transport and water conservancy infrastructures as well as "new infrastructure" projects including 5G networks and data centers, all of which will be remarkable boosts to demand for bulk commodities, the CFLP said in an analysis posted on its website.

Local governments have already unveiled a raft of "new infrastructure" projects to boost industrial and consumption upgrading and forge new growth drivers.

Southwest China's Guizhou Province has started the construction of 49 "new infrastructure" projects with a total investment of 10.4 billion yuan (about 1.47 billion U.S. dollars) in April. Shanghai is expected to invest a total of around 270 billion yuan in the next three years to build such infrastructures including 34,000 new 5G base stations.

Industry indicators compiled by the CFLP pointed to warmer demand since March. The index of bulk commodity inventory dropped to 99.6 percent in April as consumption further picked up.

The CFLP said announcement of the time-setting of the "two sessions" had sent a convincing signal of China's effective control of the COVID-19 epidemic and preparedness to fully reopen its economy, which will enable faster growth in effective investment and stronger domestic consumption.

Known as the "two sessions," the annual sessions of China's national legislature and political advisory body are the country's key political gatherings of the year.

China's top legislature announced that it will hold the annual session starting on May 22, while the top political advisory body said its annual session was proposed to open on May 21.
Add comments

Latest comments

Latest News
News Most Viewed