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2 iron ore miner Rio Tinto. A surge in iron ore to a 30-month high of $94.86 a tonne last month has prompted some Chinese producers to consider reopening mines shuttered years ago in a sector downturn. Strong steel prices in top consumer China had fueled iron ore's rally and while the raw material has come off February's peak, it remained above $80 a tonne this week, up 47 percent since the end of September. "Additional capacity in Brazil and Australia is already reflected in iron ore prices, so the potential reboot in Chinese iron ore production is the main source of uncertainty and therefore the likely factor that will result in price volatility," Kellie Parker, Rio's managing director for planning integration and assets, told an industry conference on Wednesday. BHP Billiton, the world's third-biggest iron ore producer, expects to see some idled iron ore capacity in China returning to the market, but could not estimate how much. "We think if the price maintains the level that is attractive, you will see some (capacity return)," Edgar Basto, president of BHP's Western Australia Iron Ore Asset, told reporters at the same event. Basto also said he expects some downward pressure on iron ore prices amid high stocks at China's ports. "This current number we're at is a relatively high level...I think that in the second half we will probably see some pressure on the price," he said. Stockpiles of imported iron ore at China's ports reached 132.45 million tonnes last week, the most since at least 2004, according to SteelHome consultancy. But both miners see continued firm demand for steel in China and elsewhere in Asia including India.

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