Overproduction begins to hit the market as steel prices in China dropped in July after five consecutive month-on-month rises, Xinhua reported. Steel prices in July dropped 3.9 percent from June and 4.9 percent from the same month last year, said Xunhua, quoting a report released by the People’s Bank. China's steel production maintained its rapid growth in the first six months, with unprocessed steel output approaching 200 million tons.