Two major iron ore indexes in Asia inched higher on Monday amid expectations that Chinese steel mills plan to buy more stocks ahead of the new year holiday.
The Metal Bulletin Iron Ore Index .IO62-CNO=MB rose 27 cents to $167.59 per tonne on Monday, and the Steel Index 62 percent .IO62-CNI=SI remained almost flat at $170.9 per tonne.
Rising demand from Chinese steel mills after buying only for near-future production, and a squeeze in global supply have supported import prices of iron ore.
Offers of Indian ore with 63.5 iron content stood at $177-179 per tonne on Tuesday, CFR delivered to China, steady in recent days, traders said.
The most active rebar futures contract SRBK1 on the Shanghai Futures Exchange traded at 4,751 yuan ($716.5) per tonne at 0216 GMT on Tuesday, up from 4,734 yuan per tonne at Monday's close.
Commodities markets largely pared early losses on Monday after an interest rate rise by the People's Bank of China, focusing instead on positive fundamentals and supply concerns across markets.