Iron ore prices have risen since the second half of last week against a backdrop of strong demand from steel mills and tight supply.

62 per cent of the benchmark iron concentrate imported into northern China on Friday traded at $216.45 a tonne, up 1.4 per cent from Thursday's closing price, according to market prices of the day.

"Iron ore and steel prices are rising again amid strong demand in China's steel industry and supply problems for the world's largest producers," Fitch Solutions (Fitch Solutions) wrote in a report.

However, Fitch added that this was expected to limit iron ore gains in the coming months, given later supply improvements and weak consumption by downstream companies at current high prices.