China's bulk commodity market shrank in July with a decline in supply and sales, industrial data showed.

The China Bulk Merchandise Index (CBMI), a gauge of domestic bulk commodity market growth, stood below the boom-or-bust line of 100 percent to stand at 99.6 percent last month, according to the China Federation of Logistics and Purchasing (CFLP).

This marked the fourth consecutive month of the CBMI drop, signifying downward pressure on the bulk commodity market.

The sub-indices for bulk commodity supply and sales dropped in July compared with the previous month, while the sub-index for stocks grew faster.

The CFLP predicted that the domestic bulk commodity market is likely to rebound with the implementation of favorable policies and upturn of market prospects.