Traders should sell iron ore after its swift rebound above $US100 a tonne, strategists warn, brushing off tentative signs that the severe oversupply that has plagued the industry is starting to ease.

The spot price of iron ore jumped 4.1 per cent at the start of the week to $US100.10 a tonne, according to S&P Global Platts, and has bounced 10 per cent from a two-year low of $US91.45 just two weeks ago. Futures climbed a further 1.6 per cent to $US102 a tonne on Tuesday.