China's steel product prices will likely rise gradually in the second quarter, recovering from a first-quarter slump, the official China Securities Journal reported Thursday, citing a report by the country's top economic planning agency.

Prices of key steel products plunged 20.9 percent in the January-March period, partly due to a glut in the domestic market and a drop in international prices since late last year, the newspaper said, citing a report issued by a price-monitoring center under the National Development and Reform Commission.

The price fall is expected to erode the first-quarter profitability of major domestic steel mills.

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