Offers for Australian, Brazilian and Indian iron-ore increased a dollar per ton, said Chinese consultancy Umetal. Mongolian imports, including iron ore, have competed well against commodities from other nations due to its cheaper prices and light taxation.

Australian Pilbara fines were quoted at between USD 140 and USD 142 a ton, Newman fines between USD 143 and USD 145, and Indian 63.5-63-grade was offered at between USD 146 and USD 148. Iron-ore with 62 percent iron content was steady at USD 140 a ton on Monday, costs and freight delivered to China, according to Steel Index.

“There is still restocking taking place, but in small lots of 30,000 to 50,000 tons,” said a Hong Kong-based iron-ore trader. “The key question is we need to find the customer who hasn't restocked and still get a good price.”

Firmer steel futures in Shanghai may encourage more steel procedures to secure spot iron-ore cargoes. The most-traded May rebar contract on the Shanghai Futures Exchange closed up 0.7 percent at CNY 4,215 (USD 667.23) a ton, its third gain in four sessions. Traders are looking to a tender by BHP Billiton on Tuesday for price direction, although some are hoping the continued restocking of iron-ore by Chinese mills ahead of the Lunar New Year break in late January will support prices that fell 19 percent in 2011.

A Reuter’s poll in mid-December showed China's iron-ore imports would rise to a record 720 million tons this year, reflecting continued investment in public housing and infrastructure. China's iron-ore imports rose 10.9 percent to 686.06 million tons in 2011, with December purchases at 64.09 million tons, down marginally from a 10-month high of 64.20 million tons in November. Potentially tighter supplies should also support iron-ore prices.