China's bulk commodity market growth eases in June

BEIJING - China's bulk commodity market saw slower growth in June amid shrinking sales, industrial data showed.

The China Bulk Merchandise Index (CBMI), a gauge of domestic bulk commodity market growth, stood above the boom-or-bust line of 100 percent at 105.2 percent in June, down 0.7 percentage points compared with May, according to the China Federation of Logistics and Purchasing (CFLP).

The sub-index for bulk commodity sales expanded slower in June compared with the previous month, while the sub-indices for supply and stocks grew faster, pointing to oversupply in the market and weak activities in the slack season.

The market is expected to be faced with greater downward pressure this month as ongoing heat waves in July weigh down demand, the federation said.

However, the CFLP predicted that the weakening of the domestic bulk commodity market will be limited as the economy remains on the path to recovery and pro-growth policies will drive up demand.

In June, China's purchasing managers' index for the country's manufacturing sector ticked up to 50.9 from 50.6 in May, staying above the boom-bust line of 50 for the fourth month in a row.