The price hikes range from 200 to 700 yuan ($29.30 to $102.54) per ton, with prices of generous plates up 200 yuan per ton, and prices of hot rolling and cold rolling plates rising 300 yuan per ton. The steel maker also raised prices of non-oriented silicon steel products by 500 yuan per ton.

Analysts said that the price surge of raw materials and hot sales of certain products are the main reasons for Baosteel's price adjustment.

In addition to the rise in iron ore prices, coal prices are set to increase, as the coking industry association of the coal-rich Shanxi province advised industry players to raise prices by 50 yuan per ton.

The rising prices of raw materials would push up the costs of steel products by 300 per ton, said a report of Steelhome.cn, an industry information provider.

Though China's steel industry may be bolstered by Baosteel's move, rising material costs, and the world's commodity market, analysts warned against high stockpiles of certain kinds of products.

The current stocks of hot rolling plates and deformed steel bars have reached 4.65 million tons and 5.85 million tons respectively, according to Hu Yanping, analyst with Umetal.com, another industry information provider.

Steelmakers remained in operation during the Spring Festival though sales stalled during the period, said Hu. A supply glut may be a major concern for the market after the festival, he said.