Benchmark Shanghai rebar futures closed down 0.6 percent at 3,712 yuan ($551.31) a tonne.

"Inventory of steel products is still falling but in a slower pace, which suggests the low season for steel consumption is approaching," said analysts from Huatai Futures in a note.

Hot-rolled coil prices fell 0.8 percent to 3,648 yuan.

Baoshan Iron and Steel Co (Baosteel), China's biggest listed steel maker, said on Thursday it expects lower revenue in 2019 due to a sluggish auto industry.

That comes after it reported a 46 percent dive in net income in the first quarter from a year ago, its first drop in profit since 2015, as higher raw material prices and weak demand on auto sheet crimped its profitability.

Prices of coking coal contract on the Dalian Commodity Exchange advanced 0.2 percent to 1,345 yuan, while coke  edged down 0.1 percent to 2,036 yuan.

Some coke plants in top steelmaking province of Hebei have raised by 100 yuan a tonne amid increasing coking coal prices in major coal mining heartlands, where local authorities are carrying out safety inspections at mines.

The most-active iron ore futures for September delivery  fell 1 percent to 616 yuan a tonne.

Meanwhile, U.S. President Donald Trump on Wednesday said ongoing trade talks between Washington and Beijing were going well, which also helped to improve market sentiment.

The next round of talks are slated to begin April 30 in Beijing, followed by further discussions in Washington on May 8.