From the perspective of policy measures, the immediate task is to boost confidence of market entities rather than implement a strong stimulus.

The figure dropped by 1.4 percentage points from the previous quarter, according to the National Bureau of Statistics.

All these factors will support a surge in steel consumption in the third and fourth quarters of this year, the VSA added.

China's steel sector saw output expansion in the first quarter of the year, industrial data showed.

The institute has developed the 0.08mm ultra-thin grain-oriented silicon steel strip and iron core in collaboration with several other companies and institutes including China Iron & Steel Research Institute Group.

Electric arc furnace (EAF) platemaker Nucor has increased its plate prices by $40/short ton (st).

Patrik Schober, a media representative of Tameh Czech, said negotiations are "under way" between the companies, but would not comment further.

The curve is in a clear backwardation, with May trading on screen almost €50/t below the underlying Argus assessment, which stood at €834.25/t.