Other major steel makers including Baosteel and Anshan Iron and Steel Group are also set to raise steel prices to pass costs to consumers as iron-ore prices nearly doubled last year, Thursday's China Daily reported.

Prices for hot-rolled steel coil, tinplate, electrical steel, pre-painted steel and wire rod will surge by 500 yuan per ton and cold-rolled plates will rise by 100 yuan.

Steel producers had no choice but to transfer the higher production costs to consumers to prevent a decline in margins, the newspaper cited Xu Xiangchun, an analyst with industry watcher Mysteel.com as saying.

BHP Billiton, the world's largest miner, sold its ores over 130 U.S. dollars per ton under April-June contracts, more than twice last year's fixed price.

Steel prices would continue to rise in the short term, with increasing demand for steel products and raw materials including coke and iron ore, the newspaper quoted Xu as saying.

Average steel prices in China are at their highest point since August 2009, according to Mysteel's composite steel price index, rising by 15 percent over the last month.