China's bulk commodity market continues to expand in January

China's bulk commodity market continued to grow in January with a key industry index rising for the fifth consecutive month.

The China Bulk Merchandise Index, a gauge of domestic bulk commodity market activities, stood above the boom-or-bust line of 100 percent at 102.9 percent in January, up 0.2 percentage points from the previous month to a 10-month peak, according to the China Federation of Logistics and Purchasing (CFLP).

The CFLP attributed the uptick to the continuous growth of supply and inventory sub-indices in the bulk commodity sector.

Meanwhile, the sales sub-index continued to trend downwards, indicating looming pressure of oversupplies and excessive inventory.

Considering the nationwide work suspension and transportation restrictions due to the novel coronavirus outbreak, the CFLP predicted "relatively big" negative impacts on the supply and consumption of bulk commodities.

The market would see downward pressure in the first quarter and is likely to improve in the second quarter as the epidemic eases and the government steps up countercyclical adjustment policies, the CFLP said.