BAOSHAN Iron and Steel Co, China's top listed mill, kept prices for most of its products for September delivery as the company is still cautious over the market outlook.

Steel prices had fallen rapidly by about 17 percent from late April to mid July as mills cut output and slashed prices amid a slowdown in demand. But the market has rebounded in the past four weeks and some analysts had expected Baosteel would raise September prices given falling inventories and output cutbacks.

The Shanghai-based mill, whose monthly adjusted prices are considered a benchmark in China, decided to keep prices for hot-rolled and cold-rolled coil the same as in August, it said yesterday.

But some mills like Hebei Iron and Steel Group, China's largest mill by capacity, and Jiangsu-based Shagang Group have hiked prices recently amid a rising market, but analysts said this was driven more by traders rather than demand from end users in the property, auto and home appliance sectors.

Some mills which previously cut output or put plants on maintenance have started to resume production amid rising prices.

"Market supplies will increase, so will market risks," analyst Liu Junqing at Shanxi Securities said.

Separately, Wuhan Iron and Steel Group said yesterday it may cooperate with the world's biggest mill, ArcelorMittal, in the mining sector to secure resources. Chinese companies have been seeking overseas iron ore projects to reduce reliance on the world's top three miners for the key steelmaking ingredient.

The two firms may jointly develop, invest in and acquire mines globally, the Chinese mill said, adding that Peter Kukielski, head of mining at ArcelorMittal, visited Wuhan Steel last Thursday.