Seaborne iron ore prices softened on Monday as shipments gradually returned to normal levels, easing supply concerns.

The Kallanish KORE 62% Fe index and KORE 65% Fe index retreated by $0.84/tonne and $0.77/t respectively, to $102.63/dry metric tonne cfr Qingdao and $115.64/dmt cfr. The KORE 58% Fe index, meanwhile, lost $0.40/t to $89.72/dmt cfr.

On the Dalian Commodity Exchange (DCE), the most-traded, May 2025 iron ore contract fell by CNY 7/t ($0.96/t) to CNY 777.5/t on Monday.

On the Singapore Exchange, May 62% Fe futures settled $1.24/t lower at $100.99/t, and 65% Fe futures dropped by $1.36/t to $114.18/t. The same contract for 58% Fe futures, meanwhile, dipped by $0.56/t to $88.35/t.

Tangshan billet, meanwhile, declined by CNY 10/t to CNY 3,030/t.

Market sentiment was further pressured by reports that the Chinese government intends to tighten restrictions on non-VAT steel exports, triggering uncertainty and prompting a more risk-averse trading environment.

Despite this, the sustained profitability of Chinese steel mills and the continued upward trend in hot metal production are expected to provide underlying support for iron ore prices.