Iron ore price continued to improve gradually on Thursday amid larger trading volumes and optimistic short-term demand forecasts, though port inventories slightly increased.

Australian iron ore fines 62% Fe climbed by $2.5/t to $216.5/t CFR, while both its futures on the DCE and steel tags remained mostly stable on daily basis.

The rise was supported by stronger buying activity in the seaborne market, with trading volumes adding 80,000 since Wednesday.

The raw material demand prospects for the near future are positive as well. “Iron ore demand is expected to increase next week, as operation restrictions imposed on steelmakers and constructions sites during the celebration in Beijing will be lifted,” a market source.

At the same time, iron ore port inventories have grown by 0.5 million t to 124.45 million t this week.