Iron ore prices hit their highest levels in nearly five months, leading one analyst to forecast a further rally of up to 30 percent this year.
Prices of the industrial metal climbed to $141.80 per metric ton on Tuesday, a more than 60 percent increase from lows of around $86.70 per ton in September last year amid heightened fears over a Chinese economic slowdown.
Sentiment was buoyed heavy steel restocking in top consumer China on news the government will take softer approach on price control.
Recent better-than-expected import data from China also boosted sentiment. July imports jumped 17 percent on June's levels to a record 73.14 million metric tons, data showed on Thursday.
"I believe we can approach record highs this year [in the iron ore market]. You are looking at a 20-30 percent increase," Jonathan Barratt, founder of Barratt's Bulletin, told CNBC.
Iron ore, a key component of steel, hit a record high of $191 per metric ton in 2011 on back of huge demand from China.
Barratt said the iron ore market was set to see substantial gains as the U.S. Federal Reserve's tapering of its bond buying program approaches.