Reuters reported that thin demand for steel is limiting buying interest among the Chinese for raw material iron ore before the week long holiday that starts on January 23.

In the past years Chinese mills have aggressively stocked up iron ore ahead of the annual holiday and lifting spot iron ore prices strongly during the period.

The Shanghai trader said "There's some restocking activity but it's limited. Most of our clients are still hesitating to purchase too much raw material because the steel market is not that encouraging."

Chinese consultancy Umetal said offer prices for imported iron ore in China were mostly steady on Monday with Australian Pilbara fines at USD 139 a tonne to USD 141 a tonne and Yandi fines at USD 126 per tonne to USD 128 a tonne including cost and freight.

Umetal said Indian 63.5/63-grade fines were quoted at USD 145 to USD 147 a tonne.

(Sourced from Reuters)