China's steel prices have just begun to rebound after a sharp drop for more than 100 days, local newspaper 21st Century Business Herald has reported.

According to the report, the country's steel prices began to recover starting on July 4. Taking Shanghai for example, steel prices rose between 200 yuan (US$24 US) and 250 yuan (US$30) per ton.

This prompted industry insiders to believe that this round of price cutting for steel caused by the state macro-control policies has come to an end.

But Xu Weibin, an official with the Nanjing Iron and Steel United Co. Ltd, held that it is hard to say steel prices have a bright future despite the recent recovery because the state tightening macro-control policies are still there.

It is expected that the state will further lower the export rebate taxes for the steel industry, which currently stand at 11 percent after the Ministry of Finance and the State Administration of Taxation slashed the rate from 13 percent starting on May 1.The state may even eliminate the policy of discouraging exports, Xu was quoted as saying.

In addition, the demand for steel will be curbed with the slowing growth of the property sector, as the Chinese government aims to cool the development of the overheated industry, Xu said.

(Xinhua News Agency July 21, 2005)