The nation's largest steelmaker POSCO is to hike the price of hot-rolled coil and cold-rolled coil starting next month.

The steel giant said Tuesday a recent price increase in iron ore in the global market forced it to raise some product prices including hot-rolled coil produced in blast furnaces by W20,000-40,000 per ton (US$1=W958) or 3.3-8.3 percent starting from July 13.

Major global iron ore suppliers including Brazil's CVRD concluded negotiations with global steelmakers last month, which produced a 19 percent increase in prices.

But POSCO says it will not immediately raise prices for thick steel plates for ships, wire rods and other products, whose prices will be adjusted according to future changes in the global market.

"On top of a sharp increase in the iron ore price, recovering demand in the U.S., Europe and China is also raising prices of steel products," a POSCO staffer said.