CHINESE STEEL RALLY DRIVING THE PRICE OF IRON ORE IS "ONLY STARTING", SAYS CREDIT SUISSE

The Chinese steel rally driving the price of iron ore is "only starting", with a "major restocking event" about to deliver a very strong year for steel demand, Credit Suisse has said.

Iron ore made plenty of headlines last week as its price rose 16 per cent higher, from $US60.36 a tonne on Monday to $US70.46 on Friday – a level last seen in early 2015.

It also marked an 84 per cent price rebound in Australia's largest mineral export since it bottomed at $US38.30 in December, a low last seen in the years of the global financial crisis.

Iron ore did ease a little over the weekend, falling to $US66.33 a tonne.

Provided steel demand keeps up, so too should the price of iron ore, Credit Suisse said.

"Iron ore has more upside while the Chinese steel rally lasts," Credit Suisse analyst Matthew Hope said.