The benchmark iron ore price has remained elevated since the previous RBA statement in August, briefly reaching its highest level since 2014 in early September. The iron ore price has been supported by continued strength in Chinese steel production, underpinned by public infrastructure and real estate construction.

Port congestion in China has also supported prices, although this has eased more recently. Supplies of iron ore from Brazil have increased following various disruptions earlier in the year, which has dampened the upwards pressure on prices, the RBA said.

Australian iron ore producer Roy Hill has paid off its debt and is operating at 60mn t/yr at its Pilbara mines in Western Australian, as it seeks approval to further increase its target to 65mn t/yr.

Roy Hill operated at 60mn t/yr during April-June and continues to do so, according to main shareholder Hancock Prospecting. The joint venture shipped at around 70mn t/yr in October, according to shipping figures compiled by Argus, but it has taken its regular one-week break from shipping in the past week that will lead to lower shipments in November.

• [Editor:kangmingfei]