Steelmakers are expected to maintain or cut product prices for June after the government came out with policies to cool the sizzling realty sector.

Anshan Iron and Steel Group, China's fourth-largest steelmaker, said it would keep prices of most of its products unchanged in June over May levels,.

Jiangsu Shagang Group said on Wednesday that it reduced steel prices for the construction sector, cutting rebar prices by as much as 6 percent.

"This is the first time that steel mills are talking of maintaining or cutting product prices since the Spring Festival (Feb 14). It also signals a market adjustment due to several factors," said Xu Xiangchun, a senior analyst at consultant firm Mysteel.

Significantly the price adjustments come at a time of a product glut and stagnant capital markets, even as the government curbs weigh heavily on the real estate sector.

The Shanghai Composite Index has declined nearly 12.8 percent since April, on concerns that the government will use monetary policy measures to contain inflation and avert asset bubbles.