Iron ore prices continued to drop on the last trading day of October, settling just above the US$106 level. The price of 62% Fe grade iron ore fines from Australia delivered to China fell by US$0.30 to US$106.30 on October 31.

The drop in prices was due to falling steel prices in China, a 1.5% week-on-week increase in iron ore port inventories, and new environmental production restrictions in Hebei province, which softened market demand.

Despite the recent fall, iron ore closed the week with a 2.2% growth and the month of October with a 2.85% rise, resulting in its fourth straight monthly increase.

For November, market participants expect a weakened outlook due to high supply from miners and reduced demand as the peak construction season ends and Chinese steel mills' profits shrink.