China Steel, Taiwan's top steel maker, will raise its domestic product prices by 8.6 percent in October-November from September as demand recovers from the global economic meltdown, the company said.
The rise, which followed the firm's biggest increase in a year in September, was roughly in line with market expectations of an 8 percent rise.
Some analysts said China Steel could raise its prices further, as re-stocking demand by rivals in Europe and the United States outweighed Chinese rivals's expected price cuts.
"Globally, the pressure of an industry-wide inventory correction will not be huge," said an analyst at First Global Securities Investment Trust. "We are positive about the sector's outlook throughout the first half of next year."
Earlier this week, several major Chinese steel mills slashed their produce prices for September sales by up to 19 percent from their August levels, industry consultancy Umetal said, as spot prices continued to fall on weak demand.
The price cuts come as Chinese spot steel prices languish amid concerns that tighter bank lending, the government's crackdown on overcapacity in the steel industry and record output, may end the months-long price rally.
China Steel previously raised its products by 9.4 percent for September, its biggest increase in a year.
The company used to adjust prices every three months in the previous year or so, but started announcing price changes twice a quarter earlier this year to better reflect global markets.

Tata Steel (Thailand) Pcl may return to profit this quarter on a rebound in steel prices, Kao Hoon reported, citing President Santi Charnkolrawee.
The price of steel rods for construction may rise to $763 a metric ton from the current level of 24,000 baht, the newspaper said, citing Santi.
Tata Steel had a net loss of 167.9 million baht in the quarter ended June 30 from a profit of 2.12 billion baht a year earlier, the company said on Aug. 14.

South Korea's POSCO met with Indonesia's Industry Minister Fahmi Idris to discuss a $5 billion steel investment in the country, Ansari Bukhari, director general of metal and machinery at the ministry said.
The investment would be through a planned joint venture with state-owned firm PT Krakatau Steel, he told reporters.

PT Krakatau Steel (KS), Indonesia's largest steel producer, signed a loan agreement worth 38.7 million euro with KFW IPEX Bank and HVBBank, the private news portal detikcom reported.
"The loan will be used to finance revitalization of a hot strip coil factory," said the company's president director Fazwar Bujang after the signing ceremony.
Fazwar said that with the loan, its hot strip coil production could be increased. "With the revitalization, the factory is expected to operate in November 2010," he said.
According to Fazwar, KS is also exploring a new loan worth 145million dollars to modernize the company which total budget amounts 200 million dollars.
"Before the year's end, we would get 145 million dollars loan," said Fazwar. He said that the company would submit tender to western European banks on September or October.
He said that the company is planning to increase its production on upstream iron making, midstream steel making and downstream hot roll coils in its factory in Cilegon of West Java province.
"The iron making production will be increased from 1.5 million tons currently to 1.8 million tons, the steel making production will be increased to 2 million tons from currently 1.5 million tons per year while hot roll coils production to be increased to 2.4 million tons from 2 million tons," he said.
More than 87 percent of KS's production is sold to the local market, mainly to construction companies, state shipyard PT PAL, and to gas stove and gas cylinder producers. The remainder is exported to Australia, India, Japan, Malaysia, New Zealand, Singapore and Spain.

South Korea's POSCO, the world's No. 6 steelmaker, said that it had boosted capacity of an auto steel processing plant in Japan, as it seeks to expand market share in a high-end product segment and overseas sales.
POSCO, which already has auto sheet processing plants in Kyushu, where Toyota, Nissan and Daihatsu have production facilities, said the new plant added in Nagoya has an annual capacity of 150,000 tons.
The latest launch follows the opening of processing plants in India and Thailand early this year to supply auto and electronics steel in the region, and the firm is planning to open plants in China and Turkey.
POSCO, which earns around 70 percent of its revenue in the home market, expanded its customer base this year by signing a supply deal with Sony Corp for LCD television manufacturing outside Japan and an auto sheet sales deal with Toyota for production in Japan.

Japan's stainless steel producers are scheduled to start negotiations this week on their exports of nickel based CR sheets to China for November shipments. It is likely that the negotiations with local customers will focus on a price level of USD 3,000per ton CNF in the wake of a fall in China's domestic stainless steel market.
In China, domestic prices of stainless CR sheets fell steeply last week, while those of ordinary steel products have declined by CNY 200 to CNY 500 per ton so far since the beginning of August. As a result, it is likely that Chinese customers will demand a price reduction in their imports of nickel based stainless CR sheets from Japan for November shipments. Japan's stainless steel producers are contracted to provide the Chinese customers nickel based CR sheets at around USD 3,100 per ton CNF for October shipments.
China's stainless steel market for nickel based CR sheets came down by as much as CNY 1,500 from CNY 25,000per ton after tax to CNY 23,500 per ton after tax last week. Also, there are local moves for realization sales of stainless steel products as in the case of ordinary steel products.
China's stainless steel manufacturers operated their production facilities at capacity in July. They are believed to have done likewise in August as well even though their production performances then have yet to become clear. But it is uncertain whether they have won sufficient orders to meet their operations at capacity. In South Korea, meanwhile, integrated steelmaker POSCO increased its domestic sales price of nickel based stainless CR sheets to KRW 3,670,000 per ton at the end of August. In Taiwan, various stainless steel producers are said to have executed a price increase of USD 450 per ton to a level of USD 3,000 per ton CNF in what they export as nickel based CR sheets.

TEX reported that JFE Steel Corporation has agreed with China's two tinplate manufacturers, Fujian Sino Japan Metal Corporation and Hainan Haiwoo Tinplate Industry Co, on a price increase of slightly beyond USD 100 per tonne in the Japanese integrated steel maker's export deals of TMBP with both Chinese customers for October to December shipments. JFES has already settled a price increase of USD 100 plus in its TMBP export deals with various tinplate manufacturers in Southeast Asia for October to December shipments. As a result, it follows that JFES has succeeded in pricing up its TMBP exports by USD 100 plus for Q4 shipments to all the Asian destinations. Also, JFES has negotiated its TMBP exports to Colombia with a price increase of USD 100 plus for Q4 shipments.
JFES started its TMBP export negotiations with the Chinese customers last week on Q4 shipments after the Japanese steelmaker finished the corresponding negotiations with various tinplate producers in Southeast Asia.
JFES gave a four point explanation of its contention as the company did to the Southeast Asian tinplate manufacturers in its negotiations with the Chinese customers. First, the Japanese steelmaker wants to stabilize what it charges for TMBP exports. Second, a price increase of USD 200 per tonne to USD 900 per tonne FOB is necessary for a stable TMBP price. Third, BaoSteel's tinplate price reduction for Q3 shipments deserves no consideration because it amounts to a price revision with no ground.