Spot iron ore prices rose on Monday for the first time in more than seven weeks as buyers returned to the market after a precipitous drop in the commodity, a key ingredient in steelmaking.

The gain puts an end to a 36 per cent decline in iron ore prices since early September. Chinese steelmakers, who account for 60 per cent of the internationally-traded market, had halted their purchases of iron ore in the spot market amid concerns about an economic slowdown.

But traders and analysts said the sharp plunge in prices appeared overdone, especially as sentiment towards industrial commodities more generally had improved last week, with copper rallying 14.4 per cent. “On the physical side there is some genuine weakness but it’s much overstated,” said Ric Deverell, head of commodities research at Credit Suisse.