Maintenance checks were under way at Haixin's plant in Shanxi province, a report on Shanghai-based news site Peng Pai said on Monday.

"The pick-up in the steel price has allowed Jianlong to accelerate its plan to restart production at the plant," Mysteel chief information officer Xu Xiangchun said.

The plant's reopening comes at an awkward time for China as it faces pressure from the global steel industry to rein in production.

China is producing more steel than its domestic market can consume and selling the excess on world markets. This excess production has been a factor for much of the last five years.

However, it hit home for many Australians last Thursday with the collapse of steel maker Arrium, triggering the potential loss of about 5500 jobs.

While British Prime Minister David Cameron recently has raised concerns with Chinese President Xi Jinping after Tata Steel's decision to offload its British operation, Australia is in a more difficult position. It sells a lot of iron ore to China that goes into making steel. That is why Prime Minister Malcolm Turnbull is unlikely to make it an issue when he visits Beijing this week.

Trade Minister Steve Ciobo, who is in the Chinese capital to kick-off Australia Week, an event that will attract 1000 business delegates, told the ABC on Monday "this isn't about Australia or China per se, this is about what's happening on an international basis".

"Let's not lose sight of the fact . . . that most of the steel that's being made in China is actually being made with Australian iron ore," he said.


Work also started again at other blast furnaces in Inner Mongolia, Shaanxi, Henan and Tangshan.

Mr Xu said in April almost 89 per cent of production capacity across China was being used, up from 80 per cent at the end of last year.

Jianlong is one of the few profitable steel companies in China. However, the sector's prospects are improving as prices have recorded their biggest rally in five years during the first quarter.

Local government officials, who are eager to boost the economic prospects of their regions, also are encouraging the reopening of mills.

Last week, Yuncheng party secretary Wang Yuyan visited the Haixin site, urging a speedy resumption of production.