Spot physical import prices of various types, grades and origins in China posted minor gain of about USD 1 per tonne on Monday as buying activity by some steel mills lent support to sellers who are saddled with higher priced inventories amid hopes of further credit easing by the Chinese central bank PBOC

Iron ore futures for May delivery on the Dalian Commodity Exchange also rose 1.9% to CNY 484 a tonne

The People's Bank of China changed rules to expand the base for calculating loan to deposit ratios starting from 2015 and it is expected that such a revision could unleash an estimated CNY 5.5 trillion (USD 884 billion) of funds and boost investments, in turn increasing demand for steel products and iron ore. The move, which comes just weeks after the central bank cut interest rates, is also seen as an indication that Beijing could step up efforts to stimulate the economy.

However, the Chinese steel sector continues to face considerable headwinds from a slowing economy as a top Chinese government think-tank said in a report published on Monday said that Growth in China's gross domestic product is expected to slow to 7% in 2015 from a forecast 7.3%