"There is no shortage of supplies. The price surge is not an exact reflection of the current supply and demand situation," said an analyst.

Located in North China, the Inner Mongolia autonomous region is not only famous for its vast grassland, but also its great mineral resources.

That month, a high-speed train linking Beijing and Chengde city in Hebei went into operation.

That month, a high-speed train linking Beijing and Chengde city in Hebei went into operation.

Deng Jun, executive vice-president of Aux Group, said, "The rising prices of aluminum, copper and steel (iron ore) have forced us and the whole industry to raise product prices."

Even though China's foreign trade surged more than 29 percent on a yearly basis in the first quarter, the public should not get unduly optimistic.

Even if inflation rises in the future, as long as such a rise remains moderate, the benefits to the economy will outweigh the negative impacts.

In the January-March period, crude steel output rose 15.6 percent year on year to 271 million tonnes.