Corus shares soared eight per cent following the company's announcement it was increasing the price of its steel.

Prices will rise by at least £50 a tonne in the UK from July, while customers in the rest of the European Union will face increases of up to 20 per cent as Corus reflects stronger demand and higher raw material costs.

City analysts, who have seen Corus shares slump in the wake of financial difficulties, warmed to the latest changes, which were announced after the close of trading on the London market on Wednesday. Yesterday, shares rose 3p to close at 40p. At its lowest last year, the price hovered around 4p.

Investment bank SG lifted its rating on the steel group from sell to hold, although it warned there could yet be a knock-on effect for the company's order book in the second half of the year.