The latest positive for prices came from news a court ordered top-tier Brazilian miner Vale to close one of its ports temporarily after alleged environmental breaches, according to Bloomberg.
On news of the interruption to supply, the price of iron ore rose by 1.9 per cent, or US80c, to $US41.30 a tonne.
The price was also supported by positive sentiment from investors around the world. A broadbased market rally took place late last week as the oil price jumped and ECB president Mario Draghi hinted at further easing.
Other factors have been positive for the iron ore price in recent days. There has been talk of wet weather affecting supply from Brazil, BHP Billiton cut its output forecast and Rio Tinto said it produced slightly less ore in the December quarter than analysts expected.
If the latest supply disruption in Brazil continues for any length of time, it could be positive for prices. On the other hand, Brazilian companies have in the past been able to get injunctions to keep operating while legal cases continue, Bloomberg reported, in which case the disruption could be short-lived.
Despite the latest gains, the iron ore price remains at depressed levels following an 18-month bear market.
Traders are still concerned about an oversupply of the commodity as Chinese growth slows.
The two major Australian miners moved modestly in London trade, with BHP Billiton up 1 per cent and Rio Tinto falling 1.1 per cent.
The Australian