Prices for steel plates, widely used in the manufacturing industry, jumped about 15 percent. Baosteel's price hike sent steel stocks higher against a weak broad market.

''That far exceeded expectation,'' said Liu Rong at China Merchants Securities.

''Second-quarter prices are set to rise as a whole domestically.''

Some analysts say steel prices may fall in the second half this year as a result of state macro-control measures.

(Shanghai Daily February 29, 2008)