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China's producer prices continued to fall in July but the decline has kept narrowing as economic activities recovered amid effective epidemic control in the country, official data showed Monday.

The trade volume from January to May totaled 172 billion yuan ($24.3 billion), an increase of 21.1 percent over the same period last year.

Oversupply concerns weigh heavily on the steel sector in China as some 80 million metric tons of fresh capacity will hit the market this year amid dwindling demand due to the COVID-19 epidemic, an industry expert said.

China iron and steel association (Cisa) member mills increased steel output to a record high in late July as stimulus and lockdown delays extended the construction season into late summer.

Japanese steel producers, mired in one of their biggest postwar crises, are likely to reveal their troubles have crept into the new fiscal year when they start reporting earnings this week.

HBIS Resources Co Ltd, a unit of China’s second-biggest steelmaker HBIS Group, said last Monday it had signed an initial deal to develop the Pampa de Pongo iron ore mine in Peru alongside current licence-holder Zhongrong Xinda.

Exports of the province in the first six months totaled 110.27 billion yuan, up 1.7 percent year-on-year, while its imports surged 18 percent to 82.18 billion yuan during the same period.

Thyssenkrupp completed the sale of its elevator business for 17.2 billion euros (20.4 billion U.S. dollars).