Resources analysts in Perth say the recent surge in the spot price of iron ore has been a shock.
Chinese spot iron ore prices have almost doubled from a low of around $US87 a tonne in September to $US156 a tonne overnight.
Restocking by China and a lack of supply from India are among the reasons for the price jump.
The major mining stocks like Rio Tinto and BHP Billiton have rebounded in line with the price increase for the steel making ingredient.
However, Patersons Securities resources analyst Tim McCormack says he does not think the gains will last.
"If you look back over the past three years, the March and June Quarters are traditionally quite strong and that follows by a dip in September," he said.
"Our calendar year average this year is $US128 dollars currently.
We're well above that in terms of price at the moment, but we think that in the second to mid part of the year we'll probably come back toward that average." Tim McCormack from Patersons says the price falls could be bigger if demand from China dries up.
"If stockpiles do reach near capacity again and there's not a huge demand for steel - if there's not the concerted Chinese stimulus that drives the demand for steel - then these stockpiles may get drawn down, and the price will relax like we saw in September and October last year."