Iron ore prices have continued to climb, hitting a 15-month high, of more than US $155 a tonne.
Prices for the commodity have rebounded strongly since collapsing to US $85 a tonne in September due to volatile market conditions.
The rise has allowed many junior miners to bring projects back online.
Economist with BIS-Shrapnel, Steven Gosarevski says he expected China to increase its demand for the commodity, after using up its stockpiled ore.
He says the new Chinese leadership has also implemented new stimulus measures, boosting demand.
"We're unsure as to how long they will persist at these levels," he said.
"We expect in the year to come the prices to flatten out and decline and settle in the US $130 to US $140 per tonne range."