Iron ore prices are at their highest level in five months due to heavy re-stocking in China. Prices have reached $US141.80 per tonne.
Philip Kirchlechner of the Steel Index said stocks at steel mills in China have been fairly low: about 20 days worth of supply, whereas typically they are at 30 - 40 days.
"They're getting caught short,'' he said, ''and that causes buying to increase again and the price to spike."
Rob Brierley of Patersons Securities said other factors had also played a part: "I think China (is) ... running a leaner inventory system,'' he said.
Earlier predictions were that the price could fall below $US100 per tonne later this year.
However, the ABC reports Mr Brierley anticipates the price will moderate towards the end of the year.
"(But) I don't expect it to drop off the cliff so to speak," he said.
