Analysts forecast that Australia's mining boom is approaching its end would likely be questioned again as the country's iron ore sector just added $65 billion to the current financial year due to higher commodity prices.

Iron ore prices reached $138.07 per tonne on Friday, up by 21 cents. Price of the steel-making key ingredient has been above $130 due to the stockpiling by Chinese mills of iron ore.

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As a result, share prices of mining and industrial companies enjoyed increases with Mount Gibson Iron logging a 111 per cent boost, Arrium 99 per cent and Fortescue Metals Group (ASX: FMG) 92 per cent.

The two giants, Rio Tinto (ASX: RIO) and BHP Billiton (ASX: BHP) enjoyed substantial income hike in dollar terms, but due to their size and diverse operations, the impact of such development is diluted on their share prices. Since June 30, BHP shares were up 21 per cent and Rio 25 per cent.

The continuous strong commodity prices was because there was no seasonal reduction in steel demand in September and October amid restocking at record levels of iron ore imports by China the past few months.

While Deutsche Bank strategist Xiao Fu told The Australian that he expects the pace of restocking to slow down, he said the restocking cycle could last for two or three more months since Chinese millers are still below the 2011-12 inventory peaks.

Fortescue added $8.7 billion to its market value in 2013-14 and boosted its market capitalisation to $18.2 billion. The company is increasing its capacity to 155 million tonnes per annum, but UBS analyst Glyn Lawcock, who visited Fortescue's iron mines in West Australia, forecast the miner's annual rate will reach 180 million tonnes by early 2016.

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Along with the hike in iron ore price is the increase in iron ore export which went up 3.2 per cent in September. Iron ore is Australia's single biggest export with volume estimated to have gone up by 16 per cent in 2013 and prices by 7 per cent.

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