Even if inflation rises in the future, as long as such a rise remains moderate, the benefits to the economy will outweigh the negative impacts.

Even though China's foreign trade surged more than 29 percent on a yearly basis in the first quarter, the public should not get unduly optimistic.

Deng Jun, executive vice-president of Aux Group, said, "The rising prices of aluminum, copper and steel (iron ore) have forced us and the whole industry to raise product prices."

In the January-March period, crude steel output rose 15.6 percent year on year to 271 million tonnes.

Sales revenues of the enterprises reached 1.54 trillion yuan, up 52.28 percent compared with a year ago, showed the data.

The measures will go into effect on June 1, the ministry said.

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

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.