Baoshan Iron & Steel, China's biggest-listed steelmaker, said on Tuesday it will raise its main product prices by 100 yuan ($15.07) per ton for February bookings, Reuters reported.
The company, usually known as Baosteel, said the price increase would be applicable to most of its main products, including hot-rolled coil and cold-rolled coil.
The move was seen as a result of having to cope in the first quarter with rising raw materials cost, which has been within analysts' expectations.
"The increase has been expected as raw materials cost has been high in the first quarter. Also demand and prices may improve after the Lunar New Year," said Hu Yanping, an analyst with Custeel.com.
China will kick off its week-long Lunar New Year holiday from Feb 2.
However, as demand for steel products has weakened after construction activity slowed in the winter season, Baosteel has remained cautious about keeping increases in a modest range.
"Baosteel has received falling orders in January compared with December, so the company has been very careful to make such increases," Du Hui, an analyst with Qilu Securities said.
Baoshan Steel usually sets the tone for other major peers including Wuhan Steel and Angang Steel.>
