China's average daily crude steel output stood at 1.930 million tonnes in the last 10 days of September, up 0.6 percent from the preceding 10 days, data from the China Iron & Steel Association showed on Wednesday.

Average daily output of the medium- and large-sized steelmakers also rose 0.6 percent to 1.64 million tonnes during the same period.

Analysts said the modest rise in steel output was a result of steel mills accelerating production to fulfill orders ahead of the National Day holiday between Oct. 1-7.

"This round of mills' maintenance was almost over and some mills had arranged production to meet some orders before the national holiday," said Hu Zhengwu, analyst with industry consultancy Custeel.com in Beijing.

China's Baosteel said on Wednesday it would keep its main steel product prices unchanged in November from October, despite analysts and traders believing that steel demand was unlikely to improve by the year-end.

"We expected Baosteel to cut prices as demand is so weak, but even its move to keep prices steady may not be able to help lift market confidence," said a trader in Shanghai.

Chinese steel mills are likely to cut steel output over the fourth quarter if steel prices continue to fall, compounded by ebbing demand as well as surging costs of raw materials.

"Orders are falling, and a few mills may consider cutting output, so we may see a decline in output in early-October," Hu added.