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Support is being given to peaking pioneers from localities, sectors and companies.

Market analysis says higher steel prices could also benefit decarbonization initiatives in the industry.

Export tariffs on ferrosilicon, ferrochrome, high-purity pig iron would be raised to 25 percent, 20 percent and 15 percent, respectively.

In 2020, crude steel output rose by 5.2 percent year on year to exceed 1.05 billion tonnes, according to the China Iron and Steel Association.

The PMI for China's non-manufacturing sector moderated to 54.9, down 1.4 percentage points from March.

A reading above 50 indicates expansion, while a reading below reflects contraction.

According to Luo, under the current pricing mechanism, iron ore prices are to a large extent determined by the producers rather than market forces.

Tariffs on exports of products such as ferrosilicon, ferrochromium, and high-purity pig iron will be raised temporarily to a rate of 25 percent, 20 percent, and 15 percent, respectively.