Shares in Japan's JFE jump on possible price hike

TOKYO, July 14 (Reuters) - Shares in JFE Holdings (5411.T), the world's third-biggest steelmaker, jumped nearly 8 percent on Monday after the company said it may raise steel prices to offset soaring raw materials costs.

JFE and other Asian steelmakers have agreed to a near doubling in iron ore prices from Rio Tinto (RIO.AX)(RIO.L) for this year, a deal which a spokesman for JFE Steel said would increase costs by 30 billion yen ($282 million) for the company.

The spokesman confirmed a Nikkei business daily report on Sunday about the possible price hike.

He said the company does not have a specific plan as to when or how much of its soaring costs it will transfer to clients, but he said a possible price hike could come as early as for the October-December quarter.

JFE shares rose 7.5 percent to 5,570 yen by midday, becoming the second-biggest gainer on the Nikkei 225 .N225. Shares of JFE rival Nippon Steel Corp (5401.T) gained 5.2 percent to 591 yen. The Nikkei was up 1.1 percent. (Reporting by Sachi Izumi; Editing by Hugh Lawson)