Baoshan Iron and Steel Co, China's biggest listed steel maker, will raise February prices for its main products by just 100 yuan (US$15) a ton as it maintained a cautious pricing policy.

The company said the 100 yuan increase will be applicable to most of its products. For February, hot-rolled coils will be priced at 4,492 yuan to 5,102 yuan a ton while cold-rolled products will cost 5,336 yuan to 6,686 yuan a ton.

The increase, analysts said, reflects higher costs of raw materials in the first quarter and is in line with market expectations.

"Production costs, market conditions and demand from the main steel consumption sectors allowed Baosteel to increase prices. But considering the already high prices for January and the week-long Spring Festival holiday in February, (which will reduce demand,) it hiked prices only modestly," Custeel analyst Hu Yanping said.

The market has been expecting an 8 percent rise in iron ore prices for Asian steel mills in the first quarter from the final quarter of 2010, Hu said. Demand from industries such as auto and home appliances also supports the steel market. China's vehicle sales rose 32 percent last year to 18.06 million units.

Other major Chinese mills, including Angang Steel and Wuhan Steel, are expected to follow Baosteel in increasing prices.