ABSTRACT
In 1998, market demand for national production materials was weak in two ways. Actual materials supply was severely restricted and market prices were in consistent decline. The consumption of some major materials declined from 1997 levels, thus inventory accumulation increased. Total consumption of the 19 major materials was expected to increase by 2% over, with a growth rate in the second half exceeding 3%. A large amount of investment will stimulate materials consumption, particularly in terms of those materials required by these investments. The demand for purchases will be strong for production frontline materials, construction materials like steel, cement, construction machinery, construction materials, and in other areas of investment like electro-mechanical equipment and machinery. The government will increase ecological and environmental oriented construction. In order to stimulate demand and jump-start the market, the government implemented a series of loose measures with monetary policy at the core, while executing counter-cycle adjustment from the fourth quarter of 1997.
