Steel production in China continues to fall

China's steel production has been declining after recording its first drop in two decades, as evidenced by the country's latest economic data.

Steel production plunged 1.8 percent year on year to 476 million tonnes in the first seven months of 2015, up from a 2.7 percent increase in the same period last year, according to the National Development and Reform Commission (NDRC ). In the first six months, production fell 1.3 percent year on year in the first half of the year.

China's metallurgy reflects a shift in the economy, which went from double-digit growth to 7 percent growth in the first half of this year, which hurt the profits of the metallurgical industry, forcing the closure of factories.

In the first half of 2015, medium- and large-sized steel producers suffered 21.7 billion yuan ($ 3.4 billion) from losses of their main enterprises, while losses were 16.8 billion yuan more than in the same period. last year, according to the China Iron and Steel Association.

Steel prices remain weak, with the domestic steel price index falling 4.68 points from June to July and 28.71 points from a year earlier, according to the NDRC.