China's rolled steel price will rebound in late June, and the current rolled steel price slump is irrational, Qi Xiangdong, deputy secretary-general of the China Iron and Steel Industry Association was quoted by the Beijing News as saying on Tuesday.

China's current rolled steel price is too low to spur the production enthusiasm of steel companies. The steel price in eastern China dropped by 70 yuan (about 8.46 US dollars) per ton following the decision of the Ministry of Finance and the State Administration of Taxation to revoke the export tax rebate policy for billet starting on April 1.

As China continues macro control policy and the steel market turns better, its rolled steel price is expected to rise again in June, Qi acknowledged.

"This year the steel price will still stay at a high position, and steel merchants need not to be panic," Qi said.

A new policy relevant to China's steel industry has been drafted and will probably be promulgated by the end of this year, Li Shijun, another deputy secretary-general of the China Iron and Steel Industry Association said at a seminar on China's steel industry last Sunday, according to the Beijing News.

The new policy, citing steel production as the industry with a huge energy consumption, will probably lift up entrance level for steel production and discourage steel export, the Beijing News said.