SHANGHAI: China's leading steelmaker Baosteel will raise prices of major products in February, the first increase since August amid confidence that demand is growing, state media reported yesterday.

Baosteel will increase the price of cold-rolled steel by 300 yuan ($44) per tonne, the official China Securities Journal said.

Data from Lange Steel Consulting firm showed it will mark a rise of seven per cent from next month's average of 4,271 yuan per tonne for one-mm-thick cold-rolled steel.

Baosteel has cut prices for major steel products four times since August due to weakening demand, the report said.

"The sudden reversal reflects that market confidence has steadily improved and panic selling has gradually disappeared," Mysteel Research analyst Xu Xiangchun said. Other large steel mills like Anshan Steel may also consider raising prices, Xu said.