* China tightening could sap iron ore strength
* Indian futures mixed, swaps fall (Adds swaps, Indian futures)
By Manolo Serapio Jr
SINGAPORE, Feb 2 (Reuters) - Spot iron ore prices hovered around record levels on Wednesday with slower market activity with top buyer China off for the week-long Lunar New Year holiday.
The key price indexes, which global miners like Vale and Rio Tinto use in setting rates for quarterly contracts, were mostly flat on Tuesday but stayed near recent record highs as tight supplies remained a key concern.
The Platts 62 percent iron ore index IODBZ00-PLT was unchanged at $186.75 a tonne, cost and freight delivered to China. The Steel Index's 62 percent benchmark .IO62-CNI=SI was also steady at $185.60.
Metal Bulletin's 62 percent gauge .IO62-CNO=MB eased 23 cents to $183.36, but still near the record $184.43 hit last week.
"I'm still bullish about prices after the Chinese New Year, especially in February and March. It's highly possible that the market will continue to go up," said Destiny Guo, an iron ore physical and derivatives broker at Market Securities.
"I think end-user demand in China is picking up, although the downside risk is what China will do to address inflation."
China has been tightening monetary policy to tame inflation and analysts expect further tightening ahead if the rise in consumer prices quickens to a 30-month high in January.
Rising raw material cost had buoyed Shanghai's steel reinforcing bar futures to a record high on Tuesday, a day before Chinese markets shut for the Lunar New Year Break.
Chinese markets will reopen on Feb. 9.
In India, iron ore futures edged higher on Wednesday, riding on firmer spot prices, although volumes were expected to remain thin.
India's Multi Commodity Exchange (MCX), its largest by turnover, and the Indian Commodity Exchange (ICEX), on Saturday launched the world's first iron ore futures. But volumes have been modest since with trading limited to domestic players.
At 0500 GMT, March 62 percent fines on ICEX gained 0.8 percent to 8,011.50 rupees ($176) per tonne, including freight cost for delivery to northern China.
On MCX, 62 percent fines for March delivery slipped 0.3 percent to 7,473 rupees per tonne, free on board.
Before India's futures contracts, trading in iron ore derivatives were mostly done through forward swaps with exchanges from Singapore to the United States and Europe offering clearing services, hoping to draw steelmakers into hedging price risks.
The Singapore Exchange clears the bulk of global swaps and prices fell on Tuesday as investors locked in recent gains.
The February contract eased 67 cents to $182.13 a tonne, March fell $1.50 to $173.50 and April dropped 20 cents to $166.
($1 = 45.45 rupees) (Editing by Ed Lane)
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