December 15 -- The prices of production materials monitored by the Ministry of Commerce (MOFCOM) climbed during the December 6-12 period after a three-week decline, reports yicai.com, citing MOFCOM.
During this period, the prices of 1# zinc and 1# copper climbed by 4.0 percent and 3.6 percent respectively as zinc refining companies lowered their capacity utilization rates and copper manufacturers lowered their supply due to equipment testing.
It is estimated that the price of copper will still increase but by a smaller extent.
Steel prices increased by 1.3 percent on a decline in inventory and rising costs. The growth rate is one percentage point higher than that recorded in the previous week.
In the same period, the prices of iron ore and coke, two materials used to make steel, rose by 1.1 percent and 0.1 percent.
It is estimated that steel prices in the short term will continue to rise as some factories hiked their ex-factory prices.
Natural gas prices increased by 2.1 percent on increases in the international price and strong demand in winter.
Prices of cement rose by 1.1 percent. The price is expected to continue to rise as growth in capacity slows and to the demand from the construction taking place in east and south China.
Rubber prices declined by 0.1 percent as the country significantly raised the imports of rubber. Rubber prices are expected to increase slightly as sales of automobiles rebounded.
Shares of Baoshan Iron and Steel (600019) fell 0.90 percent to close at 6.61 yuan per share.
