The Ministry of Commerce released Monday a report saying that China will witness a "basically balanced" market for means of production, which include metal products, energy and basic mineral products, in the first half of this year.

The report noted that of the 300 major commodities on the market, 69 will be in oversupply, 177 will be basically balanced and 54 will be in short supply.

The report said that affected by the rapid growth of domestic investment, technical upgrade and booming demand on international market, the overall price of these commodities will be kept high.

But in the meantime, the government will try to improve macro- economic readjustment, curb the overheating of fixed investment, especially investment in real estate and control the over- expanding of iron and steel production. All these policies will help ease the strain between supply and demand of energy and basic mineral products to some extent, said the report.