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

Shanxi's raw coal output accounted for about 29 percent of the country's total in the first quarter.

"We expect more cooperation with China in the years to come to facilitate its accelerated energy transition, continued economic development and improvement in living standards."

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

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.

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

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.