* BHP Billiton sells more spot cargoes, Rio ups offer
* Firmer China steel prices supporting iron ore restocking
* Rio says to resume normal ops at two Australia mines
By Manolo Serapio Jr
SINGAPORE, Aug 18 (Reuters) - Spot iron ore prices gained more ground on Thursday as increased steel output prodded Chinese mills to restock with Australian cargoes seeing brisk demand amid limited Indian supplies.
Mills in China, the world's No. 1 steel producer, made 1.9419 million tonnes of crude steel a day in the first 10 days of August, up 0.4 percent from the July 21-31 period, the China Iron and Steel Association said on Wednesday.
Daily output has stayed above 1.9 million tonnes since late February, compared to an average of about 1.7 million tonnes last year, as Chinese mills make more steel to keep up with strong demand from its construction sector.
Anglo-Australian miner BHP Billiton
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