Benchmark 62% grade iron ore rose from its May declines from US$110 to over US$130 per tome despite the trending Chinese base metals trade slowdown on the London Metal Exchange (LME). The rally appeared to be inconsistent with the traditional weakening of steal demand throughout the northern hemisphere during this quarter.

The jump also came along the same period when Australia-based Pilbara's much-anticipated new supply has started gaining traction.

June iron ore production rose to 4.6% compared to last year's number while production in the rest of the globe dropped 0.6%, according to the latest estimates from World Steel Association. China's total production in the first half of 2013 upped 7.4%, topping all other major steel producers.

The increased figures from China Iron and Steel Association (CISA) show slight seasonal slowdown to a yearly run-rate of US$760 million for the first few days of July. The percentage was still better than most calculated during previous years, only slightly less than the record-high US$800 million in March.

Margins which hold the secret to the steel sector in China are positive, allowing steel mills to continue producing in impressive volumes. Copper as well as nickel and aluminium were among the traded metals who were negatively affected by the decline.