Citi said the recent rise in iron ore prices could continue if China steps up policy stimulus, with the steelmaking commodity expected to hit $130/mt by the end of the year.

Iron ore prices have risen this week to their highest level in more than five weeks on hopes of stronger demand from China. Vale SA, one of the world's largest iron ore producers, also said there were upward risks to iron ore prices after the Chinese government made clear its support for infrastructure construction activities.