Iron ore futures fell below CNY 810 per ton, pulling back further from two-month highs as rising freight costs driven by the Iran war disrupted Chinese steel exports, weighing on demand for the key steelmaking ingredient.

Shipowners have been reluctant to commit tonnage for steel shipments amid market uncertainty, while elevated energy costs have kept steel prices firm, limiting transaction volumes.

Chinese steel output also declined in January and February, with mills holding back on inventory builds due to uncertain demand prospects.

Meanwhile, BHP Group said negotiations with China will continue after CMRG imposed a ban on its products to curb prices.

CMRG has since temporarily eased some restrictions on BHP’s Jimblebar Fines following a sharp price rally, a move widely viewed as a concession to steelmakers facing supply challenges amid the prolonged dispute.
Source: Trading Economics