Large and medium-sized iron and steel companies across the country suffered combined losses of 3.18 billion yuan ($508 million) in the first eight months of the year, according to the China Iron & Steel Association.

Compared with the same period last year, results slumped 104.22 percent. Total sales revenues from January to August were at 2.37 trillion yuan, down 6.21 percent from a year earlier.

Xinhua News Agency's Economic Information Daily quoted an official from CISA as saying that the situation for the whole industry has been deteriorating.

"Among 80 large and medium-scale iron and steel companies registered with CISA, 44 are suffering losses," the official said. In August, the 80 iron and steel enterprises lost 4.20 billion yuan in profits, the lowest earnings level for the year.

Industrial insiders say the industry's downturn has slowed fixed-asset investment of steel companies. In August, large and medium-sized iron-steel companies completed fixed-asset investment of $6.86 billion yuan, down 51.8 percent from the same period last year.