Concern that an upcoming cyclone season could disrupt supply from top iron ore exporter Australia and firmer Chinese steel prices could stretch gains in iron ore prices which have already surged more than 33 per cent since early December.

Benchmark iron ore with 62 per cent iron content rose 0.4 per cent to $US153.90 a tonne on Monday, the highest since October 14, 2011, based on data from Steel Index.

Iron ore, the raw material used to make steel, has rebounded 77 per cent since hitting three-year lows below $US87 in September as Chinese appetite bounced back along with signs its economic growth is picking up.