Reuters reported that iron rose for the first session in four as Chinese steelmakers ramped up production amid a strong consumption season, boosting appetite for the raw material.

The stabilizing Chinese economy and Beijing's plan to beef up investment in construction and infrastructure projects would lift steel demand in the world's biggest producer and consumer.

Chinese steelmakers have planned to maintain higher running rates in expectation of improving orders in September as more construction activities are picking up, which will push them to restock iron ore.

An iron ore trader in Tangshan city of northern China's Hebei province said that iron ore prices are likely to sustain the gains in coming two weeks as steel demand remains intact and mills will need to continue buying the raw material.

Traders said that some mills are slowing purchases after heavy restocking drove up iron ore prices by 6% in August, the third monthly gain, while the mills are still running at the maximum utilization rate.

An iron ore trader in Beijing said that mills and traders are in a stalemate as mills are finding it difficult to accept rising prices while traders refuse to drop offers but prices should not fall as mills have to restock if they don't cut output.

Iron ore swaps cleared by the Singapore Exchange rose across the board on Monday, with the most-traded October contract rising USD 1.47 to USD 133.59 per tonne.

Global miner Rio Tinto is selling a cargo of 165,000 tonnes of Pilbara fines with 62% iron grade on a tender to be closed this afternoon and traders are watching for clues on pricing this week.