* Forced closure of steel mills has curbed ore enquiries -ANZ
* Spot iron ore falls to one-month low
* Shanghai rebar drops over 2 pct to 3-week low (Updates prices)
By Manolo Serapio Jr
MANILA, Aug 30 (Reuters) - Iron ore futures in China dropped to two-week lows on Tuesday as appetite for the steelmaking raw material waned ahead of closures in the eastern city of Hangzhou for the G20 summit next week.
The lack of buying interest from top consumer China has pulled spot iron ore back below $60 a tonne. Renewed weakness in steel prices also pressured the raw material.
"The forced closure of steelmaking capacity ahead of next week's G20 summit in Hangzhou has seen enquiries shrink in recent days," ANZ Bank analysts said in a note.
Many small Chinese mills around Hangzhou have been ordered to suspend production to improve air quality ahead of the Sept. 4-5 meeting of world leaders.
A survey of 32 construction-steel mills in the region by industry consultancy Mysteel showed that almost half have either halted or curbed output since July, cutting steel output by nearly 1 million tonnes as part of the G20 and environmental curbs. most-traded iron ore on the Dalian Commodity Exchange DCIOcv1 closed 1.1 percent lower at 418 yuan ($63) a tonne, after matching Monday's trough of 414.50 yuan, the lowest since Aug. 15.
Further losses in Chinese futures could weaken spot iron ore further, having already slid nearly 5 percent from a 3-1/2-month high of $61.80 reached on Aug. 16.
Iron ore for delivery to China's Tianjin port .IO62-CNI=SI slipped 0.5 percent to $58.80 a tonne on Monday, a level last seen on July 29, according to The Steel Index (TSI).
"Traders lowered their offer prices to tempt sales, yet transactions remained thin," said TSI, which assesses iron ore deals in China.
On the Shanghai Futures Exchange, the most-active rebar SRBcv1 fell 2.2 percent to close at 2,422 yuan a tonne. The construction steel product touched a three-week low of 2,418 yuan earlier in the session.
($1 = 6.6782 Chinese yuan)