[ferro-alloys.com] It reported that greater supply of iron ore and a subdued Chinese steel market may weigh on prices for the steelmaking raw material when China reopens after a week long holiday.

Trading in both iron ore physical and swaps markets remained thin a day before Chinese markets resume trading. Benchmark 62% grade iron ore .IO62-CNI=SI for delivery to top market China stood at USD 131.40 per tonne over the past week, based on data compiled by Steel Index.

A Hong Kong based trader said that there's a bit of concern over more availability of spot iron ore from miners so traders are not in a hurry to take on any positions.

Iron ore exports to China from Australia's Port Hedland, which handles about a fifth of the global seaborne iron ore market, rose 3.2% to just under 23 million tonnes in September from August.

Global miners have been ramping up output confident Chinese demand will remain brisk. Rio Tinto loaded the first shipment of iron ore from its expanded annual capacity in Australia of 290 million tonnes in September and has said a further expansion of its port, rail and power infrastructure is underway towards a planned 360 million tonnes capacity.

Traders will be eyeing Shanghai rebar futures on Tuesday. They hit a 12 week low of CNY 3,570 per tonne shortly before Chinese markets closed for the National Day holiday amid rising steel stockpiles.

An iron ore swaps broker said that "Some of the Chinese expect a move down during the re opening. We have probably been sitting on the bullish side for the past couple of weeks given the low inventories for iron ore at ports and sustained appetite for steel."