A major steel producer in eastern China had been urged to idle its blast furnaces after a central government inspection, according to Reuters.

More sales will be arranged in the near term to ensure market stability, the National Food and Strategic Reserves Administration said in a statement.

Copper may grab the supercycle headlines but it’s the tiny tin market that outperformed all other base metals in the first half of this year.

The first round of China’s much-anticipated state metal reserves auctions needed only one of two days allotted for all the copper and aluminum on offer to be sold.

China is releasing metal from state stockpiles as part of its campaign to restrain prices after factory inflation in May hit its highest level in 13 years.

"Considering spot prices are supported by costs, steel will remain fluctuating at high levels," GF Futures said.

The increase came as restrictions on power usage in the tin-smelting heartland of Yunnan were "basically lifted" last month.