The iron ore spot price jumped $US5.61 overnight and is now trading at $US92.23 a tonne.

It is the first time the price has climbed beyond the $US90 mark since August 2014.

The Federal Government had forecast iron ore prices to average $US55 a tonne in 2016-2017.

The current high prices are expected to add billions of dollars in tax receipts for the federal and state governments.

In another development, the price of iron ore contracts traded on the Dalian exchange hit $US101.76 a tonne.

The higher prices have seen the share prices of iron ore companies in Western Australia jump sharply in recent months.

Shares in the Perth-based Fortescue Metals Group rose more than 6 per cent or 40 cents on Monday, to trade at $6.88.