"Although the actual demand and the state of destocking are slower than before, the overall destocking (trend) is still maintained," they wrote in a note.
"However, a gradual rollout means we would probably see more lacklustre demand growth, which could push the iron ore market back into surplus, weighing on prices," they said in a note.
Steel rebar on the Shanghai Futures Exchange gained 0.7% to 4,070 yuan a tonne. Hot-rolled coil was 0.3% higher at 4,3862 yuan a tonne. Stainless steel increased 1.9% to 13,825 yuan a tonne.