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[Ferro-Alloys.com]The benchmark iron ore price has risen to USD 120 per tonne as Chinese steel mills re stocked after stocks had run down due to perceptions of a slower recovery. The price had fallen 25% since earlier this year.

Traders in Hong Kong spoken to said the iron ore price could be range bound between USD 100 per tonne to USD 120 per tonne for some time but that this would depend on how fast the Chinese economy gathered speed in the second half of the year.

Stocks at Chinese ports rose 6.5% to 70.6 million tonnes from 4 year low in March. China accounts for around 55% to 60% of global seaborne iron ore demand.