Production materials sales to rise 16%

Sales of production materials are expected to hit US$2.12 trillion in 2006, up 16% from 2005, China's Ministry of Commerce said in a report quoted by state media. Prices are expected to climb about 3% and stay high as supply and demand remain more or less balanced in the second half of the year. Demand for energy resources, particularly oil and some non-ferrous metals, is expected to be huge in the second half of the year while markets for materials used in construction, automobiles and light industry would likely be more balanced in terms of supply and demand. The report said the continued heating of the economy would slow down as a result of macro-economic measures adopted by the government.