China's daily production of run-of-mill iron ore rose nearly 7% in April to a 10-month high as miners reacted to a 4.4% spike in spot prices in the period.

Output rose for the fourth month in a row to 3.26 million tonnes in April, taking the monthly total to 9.78 million tonnes, up 13.7% year-on-year, according to the national statistics bureau.

"Domestic output was given a boost by the strengthening spot iron ore prices, which also explained why iron ore imports slid," said a steel mill source in Shanghai.

"More steel mills turned to consume more domestic iron ore, after import prices exceeded their cost expectations," he said.

Spot prices rose to $188-189 per tonne cfr main Chinese ports for 63.5% Fe Indian fines at the end of April, up $8 for the month, or almost $20 higher than mid-March.

For April, China's iron ore imports fell to 52.88 million tonnes, according to preliminary customs data, down 11% month-on-month and 4.4% year-on-year.

Spot iron ore prices have since gone on to touch $90 cfr, which could encourage domestic production, said market participants.