MUMBAI (Commodity Online): In a major boost to the Indian steel industry, the spot price of iron ore Fe 63.5/63% gained 3% during the past week and surpassed $100 per tonne CNF, said Steelguru.

According to the portal, the markets sentiments seems to be inching forward in slow but sure measures as the Chinese steel market bottomed out with a gain of 1% during last week.

The unabated growth in Chinese steel production touching 51 million tonne in September about 22% jump YoY has guzzled iron ore fanning demand.

This propulsion has been supported by non settlement of contractual prices increasing dependency on spot market. The spot prices which has a distinctly sentimental tenor has shown sinusoidal vacillation month on month. The prices after peaking at $82 per tonne on August 7, 2009 declined by 24 % or $20 per tonne by September 11, 2009 and thereafter galloped by another $16 per tonne on November 10th 2009exhibiting a definite pattern and buoyancy.

Traders however have opted for circumspection rather than exuberance as lack of downstream demand has proved to be their nemesis in these turbulent times.