China's industrial profit growth tumbles as raw material prices fall

Reuters ^ | 26 December 2021 | uncredited Reuters staff

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BEIJING, Dec 27 (Reuters) - Profits at China's industrial firms grew at a much slower pace in November, the statistics bureau said on Monday, pressured by tumbling prices of some raw materials, a faltering property market and weaker consumer demand.

Profits rose 9.0% on-year in November to 805.96 billion yuan ($126.54 billion), well off the 24.6% gain reported in October....

...Zhu Hong, senior statistician at NBS, said while state efforts to cool soaring wholesale prices in November took cost pressures off downstream industries, the curbs meant the contribution from the mining and raw material sectors to overall profit growth weakened....

...The country's property distress has also hurt the steel sector while production of cement, glass, and household appliances remains vulnerable to falling demand. read more....

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Some of this may be repositioning of the purchasing of countries post-CCPVirus release, but low production in the "mining and raw material" sector may also mean covid is more an issue that China is letting on. But cancelling the Olympics would be China losing face on a bigly level and so nothing is happening, China is fine, etc., even if they are back to disinfecting streets .