Reuters reported that spot iron ore scaled a two month high as recent gains in Chinese steel prices encouraged producers to pick up cargoes of the raw material, setting it up to test the USD 140 per tonne level last seen in August.

Ore with 62% iron content for immediate delivery to China's Tianjin port rose 0.7% to USD 136.80 per tonne the highest since September 5. The price has traded below USD 140 since mid August.

An iron ore trader in China's eastern Shandong province said that some Chinese mills are coming back to the market, especially those from the northern part, they need to stock up for winter. China's domestic production of iron ore slows during cold weather, making mills more reliant on imports.

The Shandong trader said that "I think it's possible we can hit USD 140 again although most traders are in wait-and-see mode on this weekend's plenary meeting.”