The index tracking China's bulk commodity prices stood at 116.8 in June, dipping 1.7 percent month on month, according to data released Friday by the China Federation of Logistics and Purchasing (CFLP).
Breaking down the data, the indexes tracking mineral products and chemicals' prices rose from one month ago, while the indexes for non-ferrous and ferrous metals' prices fell compared with May.
Notably, the chemicals price index came in at 119.3 points in June, marking an increase for six consecutive months. Industry insiders said that as downstream demand gradually improved, most domestic chemical product prices grew last month.
Meanwhile, the mineral products' price index reported a rebound, ending a six-month decline.
Analysts said that the supportive infrastructure investment and other government policies have given a boost to construction activities, which has driven up the prices of cement and other building materials.
Among the 50 key types of products monitored by the federation, 31 saw prices decrease on a monthly basis, while the prices of 18 rose from May.
China's bulk commodity price index down in June
China's central bank said it will carry out temporary repos or reverse repos based on market conditions starting from Monday.
The move aims to keep liquidity reasonable and ample in the banking system and improve the accuracy and effectiveness of open market operations, the People's Bank of China said in a statement.
These overnight temporary repos and reverse repos will be conducted through bidding, with their interest rates set on the basis of the seven-day reverse repos.
Experts say these operations will further enrich monetary policy toolbox and help the central bank adjust market liquidity in a more timely and accurate manner.
Temporary reverse repos can provide funds to institutions when the market is under liquidity strains, while temporary repos can help drain excess liquidity.
A repo, or repurchase agreement, is a process in which the central bank sells bonds to financial institutions and promises to buy them back in the future.
In the Government Work Report released in March, the country vowed to continue to implement a proactive fiscal policy and a prudent monetary policy this year. It also pledged to maintain adequate liquidity at a proper level and see that aggregate financing and money supply stay in step with the projected economic growth and Consumer Price Index increase.
China's central bank to conduct temporary repos, reverse repos from Monday
