The China Iron and Steel Association (CISA) Steel Price Index stood at 109.45 by the end of June, down 1.49 percent from the previous month and down 5.48 percent from the same period last year (APPG).
In seven of the eight categories of steel products controlled by the association, prices fell, with the exception of foundry iron, which rose 0.5 percent.
CISA data showed that the fall in prices, despite the increase in sales, was caused by more expensive raw materials such as iron ore, and was the result of stable demand, balanced by surges in supply.
The fall in prices came on the back of rising market demand for steel driven by infrastructure expansion, investment in real estate and manufacturing, and an uptick in other steel-using industries.
Meanwhile, steel production in China has gained momentum, with average daily crude steel production hitting a record 2.92 million tonnes in June, CISA said.
According to the association, the decline in prices echoes the downward trend in world steel prices in North America, Europe and Asia.
CISA expected more volatility, with little signs of a rapid recovery in steel prices in China, given the possibility that a buildup of steel inventories could continue to offset the effects of robust economic growth and increasingly stringent environmental regulations.
CISA data also showed that China's steel exports fell 2.6 percent year-on-year in the first half of 2019, in part due to a worsening global economy.
