Reuters reported that China's Baoshan Iron & Steel will raise the January booking prices for some of its steel products, a signal the company is increasingly optimistic about its prospects.

The company will raise hot rolled coil prices by CNY 80 (USD 12.81) per tonne and cold rolled coil by CNY 60 per tonne. Baosteel's pricing decisions usually set the tone for the rest of the market.

Traders said that hot rolled coil prices also rose 5 percent in November, encouraging steel mills to raise prices to chase the rally.

Analysts expected little room for hot rolled coil prices to fall in December due to lower steel output and higher steel mill prices.