China would take a series of measures to curb escalating steel prices, China Central Television (CCTV) reported.

Citing an unidentified official from the National Development and Reform Commission, the report said the measures included continuing macroeconomic controls over investment in fixed assets and new development policies for the steel industry.

The report said the Central Government would impose stricter rules on land use and environmental protection for companies seeking access to the steel sector.

The government would encourage steel mills to make use of domestic low-grade iron ore resources and waste steel to minimize the country��s demand for pig iron and iron ore, CCTV said.

In addition, China will further crack down on illegal price-raising activities to rectify the iron ore market.

The State Council also approved a proposal last week to abolish a 13 percent tax rebate for billet steel exports beginning on April 1.

Chinese steel mills raised their steel product prices in February after a global hike of 71.5 percent in iron ore prices which took effect from April 1.

Last month, China Iron & Steel Association vice chairman Luo Bingsheng was quoted by domestic media as saying that steel demand in the country this year would grow by 10 percent with steel prices remaining at high levels.

Source: Shenzhen Daily/Agencies