According to customs data, China's finished steel exports reached 10.12 million tons in July, up 2.9% from the same month last year but down 5.1% from June. From January to July, finished steel exports totaled nearly 65 million tons, a 4.4% year-on-year decline. 

The drop in July exports was expected due to limited overseas orders in June. Since foreign demand in August hasn't recovered, exports could decline further in September. 

Steel mill sources said most producers are either operating at a loss or earning only limited profits, encouraging more production cuts to happen. While these cuts may help support steel prices, they are unlikely to trigger a strong rebound, as they are mainly a result of weak demand.