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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 2010 ferrosilicon contract price on ZCE closed at 5708 yuan per ton on August 18.

The 2010 ferrosilicon contract price on ZCE closed at 5730 yuan per ton on August 17.

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.

The overall ferrosilicon futures market rose slightly (the last trading day fell slightly), and the spot market was stable.

Information from the RBA's capex survey and the bank's liaison programme indicate that investment is expected to increase slightly over the year ahead as work on iron ore and coal projects increase.

During the covid-19 epidemic, the export growth of steel and iron ore was significantly higher than that of automobile.

The 2010 ferrosilicon contract price on ZCE closed at 5710 yuan per ton on August 14.