Angang New Steel Co Ltd said it believes that steel prices in China have peaked and that prices will stabilise in the second half of the year.

Managing director Liu Jie told a media briefing that demand for steel will stay strong in China in the second half as consumption trends remain robust.

Separately, director Fu Jihui said the company's investment of 22.6 bln yuan in a new plant in China's northeastern Yingkou city will be funded with internal capital and bank loans.

Commenting on talk that the Chinese Government may reduce export tax rebate rate to 8 pct from 11 pct, Fu said the company has not yet evaluates the possible impact on the company of any such move.

Angang's export volume accounts for 20 pct of its total production, Fu said, adding that the proportion of exports to total output is expected to be maintained in the future.