Baosteel, one leading steelmaker in China , announced November 11 to raise prices of steel products for delivery in January 2014, a move that may be followed by other domestic steel mills, Shanghai Metals Market learnt. 

The continual increase of iron ore served as a major impetus behind Baosteel’s move, and its influence is expected to continue. Besides, decent orders at automobile manufacturers and rising steel prices recently, compounded by intensified environment protection efforts in Tangshan, Hebei province, also promoted Baosteel to increase the price.

Profits at Baosteel will improve during Q1 2014 after price increases as the company signs orders on a quarterly basis. However, price hikes will not turn into a significant increase in profits, as steel prices are expected to hover at lows in the year ahead.

The round of price increases by Baosteel also boosted market confidence, but the positive impact should be limited due to small gains.