Australia's iron ore industry has been boosted by resilient Chinese growth data, but the mood has been tempered by confirmation that China will continue closing down ageing steel capacity.

Chinese Premier Li Keqiang revealed 27 million tonnes of Chinese steel capacity would be cut in 2014, on the same day he said China's economic growth would continue at close to 7.5 per cent.

The latter is good news for Australia's iron ore miners, after recent speculation that Chinese growth data may come in softer than 7.5 per cent. But the steel cuts have confirmed China will not be deterred from its mission to close parts of its manufacturing industry that do not meet environmental standards.

UBS analyst Tom Price said the cuts would affect a small amount of the steel industry, which has an official production capacity of 1.04 billion tonnes.

''Twenty-seven million tonnes is really a drop in the ocean given they have got more than 1 billion tonnes of capacity,'' he said.

''They are showing the good intention of cleaning the industry up, but I don't think it is going to happen this week or this year, it is probably going to happen over several years.''

Atlas Iron managing director Ken Brinsden said the resilience of the Chinese growth data reinforced his company's confidence in the future outlook for iron ore prices.

''In the main we are not concerned about growth in China for the short, medium or long term,'' he said.

''If you are asking anyone to maintain growth and stimulate economic activity, I reckon you would want to ask the Chinese because they've demonstrated an incredible track record over multiple decades now.''