Metal bulletin cited, Spot iron ore prices jumped by around $6 after the Chinese New Year holiday to around $135-136 per tonne cfr China, market participants said.

Tight Indian iron ore supply and market expectations that the Indian government may raise iron ore export taxes to 10% from 5% are helping spur prices higher, market participants told MB.

“Indian miners are holding back iron ore sales, pending the release of the export duty policy at the end of the month,” said a trader.

Some Indian miners are asking customers to bid for ore instead of putting out offers, Chinese traders noted, in a sign that they are confident renewed demand after the Chinese New Year can push up prices.

But buyers have mostly adopted a wait-and-see attitude in the first few days after the holiday so the market is still quiet.

A Tianjin-based iron ore trader said Chinese steel mills and traders will soon come to the market for iron ore, and prices will continue to climb.

This will be supported by the imminent Indian iron ore export duty increase and recent media reports that some Chinese steel mills have bought BHP iron ore at provisional price 40% higher than the 2009-10 settlement.

There are offers at $122 per tonne for 60.5% iron ore, and as high as $140 per tonne for 63.5% iron ore, he said.