China’s production materials market shows the following four characters in 2007：economic indexes keep increasing and domestic consumption blooms；the export of production materials increases sharply，which can not be controlled by the relatively weak policies；capacity release largely and resource level advances obviously；export has extrusion effect on domestic supply and market prices keep high. Form the end of 2007 to 2008，China’s production materials market operation will show itself as follows：consumption demands will keep booming，big amount of export will maintain for a long time，the problem of overcapacity of production will emerge gradually，and price will keep in high level. The increase of production materials price results from the adding of materials cost，higher wage and other uncertain factors such as geo-politics and unexpected factors. China’s production materials market will experience continuous fluctuation even acute shock in the future.