December 04, 2003

China Grain Shortage Forecast To Reach Its Peak in 2005
 

China Commercial Union and China Commercial Information Center announced the forecast about the consumption market of 2004.

As the production of grain will continue to drop down, grain shortage will reach the peak in 2005. In the next two years, the price of grain will continue to rise mildly. Meanwhile, the reduction in cotton production will lead to a rise in cotton price, thus the prices of food, clothing and textile will also rise.

Affected by the demands of steel and other metals, their prices will keep rising and influence household appliances and automobile industries. The prices of household appliances may stop falling. The rise in the prices of steel and fuel oil will bring the consumption of automobiles into rational period.