$90 a tonne on Monday, industry consultancy Mysteel said, which traders said was the highest since late last year.
SHANGHAI, July 20 - Spot iron ore prices in China, the world's biggest consumer, rose aboveAlfred
Indian ore of 63/63.5 percent iron content for August delivery rose to $91-$93 on Monday compared with $87-$89 late last week, Mysteel said, citing trade contacts for both the domestic and overseas markets.
"The actual price is $95 a tonne right now and buying is very active," said a trader based in eastern China. "Steel mills are boosting their production due to their bullish outlook on the economy, with rising steel prices easing cost pressures."
Iron ore prices delivered in China rose $5 a tonne last week to $87 a tonne, according to Metal Bulletin, while data from another price compiler, The Steel Index, showed that spot prices of 62 percent iron content delivered to China rose to $82.80, the highest since it started compiling prices in November last year.
There are 112 steelmakers and trading houses licensed to import iron ore in China but traders said thousands of firms have entered the business by securing access to qualified import channels, given the strong demand for ore.
Chinese iron ore prices got a further boost early this month after the country's two majors, Wuhan Iron and Steel Co <600005.SS> and Baoshan Iron and Steel Co <600019.SS>, hiked their steel prices by around 10 percent for August.
China's crude steel output in June reached 49.42 million tonnes, an all-time monthly peak. Daily production in June was 1.65 million tonnes, equivalent to an annual rate of more than 600 million tonnes. [ID:nSHA292168]
Congestion has become severe at major ports in northern China, with traders reporting that iron ore carriers must wait more than two weeks for unloading while port warehouse stockpiles were declining due to rising purchases.
"Trucks were queuing on the roads accessing the port, like housewives waiting to buy pork and eggs during the era of the planned economy," said a trader who runs an office in Qingdao, the country's busiest iron ore port.
Iron ore inventories at major Chinese ports slid 1 percent this week, as Australian miners stopped spot sales following the detention of four of Rio Tinto's <RIO.AX><RIO.L> China staff, trade sources said on Friday. [ID:nSHA325896]
Annual term iron ore price negotiations between Chinese steelmakers and miners, including BHP Billiton <BHP.AX><BLT.L>, Rio Tinto and Brazil's Vale <VALE5.SA>, have this year degenerated into an international row, with China alleging that Rio Tinto employees were involved in spying and bribing Chinese officials.