At the end of the latest session, benchmark iron ore for immediate delivery to the port of Tianjin in China was trading at $US56.40 a tonne, up 2.5 per cent from $US55.00 a tonne in the prior session.

The lift came as Chinese steel producers reportedly ramped up output ahead of a temporary cutback likely being ordered by Beijing in coming weeks.

“I have heard there may have been some modest pick-up in steel production ahead of enforced cutbacks in late August, early September for World War II end-commemoration in China,” UBS analyst Daniel Morgan said, according to Bloomberg.

The Chinese government is expected to order the closure of steel mills in the crucial Hebei province as it looks to improve air quality ahead of a major parade in September.

Production could also be curbed in late August as the World Championships of Athletics proceeds.

It leaves iron ore at risk of falls in coming weeks, with volatility expected to remain high.