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China is pledging more measures to help cut its excessive production capacity of iron and steel.

Price of steel in the global market has surged 20 percent from 305 U.S. dollars per ton at the start of the year to 365 U.S. dollars per ton in April.

Shen Danyang, spokesperson for the Ministry of Commerce, attributed the rising prices of iron and steel to a number of factors at home and abroad.

The spokesperson said the gradual recovery of the world economy has pushed up the demand for iron and steel.

But the rise in the prices of iron ore has also pushed up the cost of iron and steel production.

Domestically, Shen Danyang noted that the startup of a series of infrastructural projects has obviously buttressed the demand for rolled steel.

China is making efforts to cut excessive production capacity and the measures taken have produced good results.

While cutting excessive production capacity, China is adopting multiple measures to expand the areas for using iron and steel products, Shen added.

The State Council, China's cabinet announced in February that China plans to reduce steel production by 150 million tons over the next five years as the country aims to streamline its heavy industry.