The prime reason for this ruffle has been improvement in Chinese domestic steel prices since 16th October after an unbroken streak of decline for the last 75 days.

Rain hit mining operations and logistics along with loading delays had tightened supply of Indian iron ore to China thus supporting prices.

It was just when operators had given up and expecting for the worst some light is visible now.

The irony of China expected to add a whopping 120 million tonne of capacity in 2009, iron ore imports have been setting new records MoM touching a record 65 million tonne in September.

The sentiments are expected to remain buoyant for the time being as Chinese steel prices firm up.

With the impending gradual shift form benchmark pricing based long term contracts to spot cargos, the pressure will be more in the spot market likely to keep the levels firm .