Reuters reported that iron ore steadied near a one month high above USD 140 per tonne and was on course for its biggest weekly gain since January as firmer spot steel prices in top consumer China backed restocking efforts.

The price of the steelmaking ingredient has recovered 6% from this year's low touched in mid March but with its fate closely linked to steel, the upturn in iron ore prices will only be sustained if Chinese steel demand strengthens.

A Shanghai based trader said that we feel there is a bit more upside to iron ore prices. There are more enquiries and deals are concluding faster. Spot supply is also tight. Benchmark 62% grade iron ore rose 0.2% to USD 140.90 per tonne its loftiest since March 12 based on data from the Steel Index.

For the week so far it is up 3.7% its biggest weekly rise since gaining nearly 10% in early January. Gains in steel prices spurred buying interest in iron ore. Steel billet in China's key Tangshan area has risen by CNY 40 so far this week to CNY 3,290 per tonne.