CHINA PPI BREAKDOWN:

PPI y/y and m/m remained steady.
PPI -0.2% m/m, with a -0.1% input prices and producer prices for consumption goods remained at +0.1%.

Month-on-Month Analysis:
Prices in the domestic oil and natural gas extraction industry rose by 3.0% due to international influences, while the prices for non-ferrous metal smelting and rolling industries dropped by 0.4%. Copper smelting prices decreased by 1.6%, and aluminum smelting prices fell by 0.2%.

Coal prices remained stable, with the coal mining and washing industry seeing no price changes.

The ongoing adjustments in the real estate market, coupled with high temperatures and heavy rainfall, weakened demand for construction materials like steel and cement, leading to price drops in the ferrous metal smelting and rolling industry (1.7%) and the non-metallic mineral products industry (0.6%).

Within the equipment manufacturing sector, prices for lithium-ion batteries fell by 0.9%, computer manufacturing prices dropped by 0.2%, and new energy vehicle prices decreased by 0.1%, while prices for gasoline and diesel vehicles rose by 0.4%.

In the consumer goods manufacturing sector, prices increased by 0.6% in chemical fiber manufacturing, 0.3% in the production of cultural, educational, and sports goods, and 0.1% in the textile and clothing industry.

Year-on-Year Analysis:
Significant contributors to the PPI's year-on-year decline included:
Non-metallic mineral products industry prices fell by 5.6%.
Ferrous metal smelting and rolling industry prices decreased by 3.7%.
Electrical machinery and equipment manufacturing prices dropped by 2.8%.
Agricultural and sideline food processing prices fell by 2.7%.
Computer, communication, and other electronic equipment manufacturing prices decreased by 2.6%.
Automobile manufacturing prices declined by 2.1%.
These six industries combined contributed to a 1.25 percentage point drag on the overall PPI.

However, there were some upward trends:
Coal mining and washing prices rose by 0.3%.

Chemical raw materials and chemical products manufacturing prices increased by 0.3%.
Prices in the railway, shipbuilding, aerospace, and other transportation equipment manufacturing sectors rose by 0.5%.

Non-ferrous metal smelting and rolling industry prices surged by 10.6%, while oil and natural gas extraction prices increased by 6.7%, although the growth rates slowed.
Overall Impact:

The tail-end effect contributed approximately 0.1 percentage points to the -0.8% year-on-year change in the PPI, compared to -0.1 percentage points in the previous month. The new price changes this year contributed around -0.9 percentage points, compared to -0.7 percentage points in the previous month.