Iron ore futures slipped below CNY 810 per ton, retreating further from two-month highs as escalating freight costs linked to the Iran conflict disrupted Chinese steel exports and dampened demand for the key steelmaking raw material. Shipowners have grown hesitant to commit vessels for steel cargoes amid heightened market uncertainty, while elevated energy prices have kept steel prices relatively firm, curbing transaction volumes.
Chinese steel production also fell in January and February, with mills refraining from building inventories due to unclear demand prospects. Meanwhile, BHP Group indicated that talks with China will continue after the China Mineral Resources Group (CMRG) imposed a ban on its products in an effort to cap prices. CMRG has since partially relaxed some restrictions on BHP’s Jimblebar Fines following a sharp price rally, a move widely interpreted as a concession to steelmakers struggling with supply constraints amid the protracted dispute.
