The rally in iron ore prices boosting shares in Australian producers gathered pace on Monday, pushing futures for the base metal to record levels in Asian trade as evidence emerged that the COVID-19 pandemic was hitting Brazilian supply.

September-dated futures on China's Dalian Commodity Exchange jumped by more than 5 per cent on Monday to reach ¥692.50 ($US97.34), the highest price obtained for iron ore contracts since the futures exchange was established in 1993.

The rise in prices follows reports of falling shipments from the world's second-largest producer, Brazil.

"Our shipping activity models highlight that supply from Brazil has dropped to the lowest levels seen since the tailings dam catastrophe quarter one [of] 2019," Westpac said. "Brazil is now just behind the UK in terms of highest COVID case count, with daily change rising by 15,000."Under Brazil's right-wing populist President Jair Bolsonaro, the country's national leadership has pushed regional authorities to prioritise the economy over containment of COVID-19, leaving it with close to a quarter of a million cases and the world's fourth-largest total case count.