Forced shutdowns put further pressure on steel production

Efforts to cut smog come as iron ore prices decline on weakening demand

Iron ore prices dropped to their lowest level since September amid a lack of demand in China, with some mills in the world's largest buyer ordered to suspend production before a meeting of world leaders in Beijing.

"Demand remains weak as Chinese buyers sit on the sidelines, with many Beijing steel mills forced to halt production leading up to the APEC meeting," said Australia & New Zealand Banking Group Ltd on Tuesday. Prices dropped on Monday with a lack of bids, the bank said.