POSCO to raise steel product prices by 17 pct-paper

SEOUL, March 21 (Reuters) - POSCO (005490.KS: Quote, Profile, Research, Stock Buzz), the world's fourth-largest steel maker, will likely raise its steel product prices by at least 17 percent in April, a local newspaper quoted an unnamed POSCO official as saying on Friday.

The rise in prices will be in line with increased costs of key raw materials including iron ore and coal, the Maeil Business Newspaper quoted the official as saying.

"Coal import prices were at $98 a tonne last year, but sellers are asking for a lot more this year. It will be inevitable for POSCO to raise steel product prices," the official was quoted as saying.

The report could not be immediately confirmed.

The steel maker had previously said it planned to raise steel prices after agreeing on a 65 percent hike in iron ore prices with Brazilian mining company Vale (VALE5.SA: Quote, Profile, Research, Stock Buzz) (RIO.N: Quote, Profile, Research, Stock Buzz) last month.

POSCO is yet to finish talks with its coal suppliers, but the market expects coal prices to be higher this year due to bullish demand from China and supply delays from Australia.

Earlier in March, POSCO raised cold-rolled stainless steel prices by 7.4 percent and hot-rolled stainless steel by 6.8 percent to reflect rising prices of nickel, a key raw material.

Global nickel MNI3 prices have risen 24 percent so far this year to $32,650 per tonne on supply woes and strong gains in other metals. [nSEO246858] ($1=1009.1 Won) (Reporting by Angela Moon; Editing by Yoo Choonsik)