Iron ore futures are trading below $200 a ton after China’s cabinet called for tougher oversight of commodity markets.

On Wednesday, China's cabinet vowed to strengthen its management of commodity supply and demand to curb "unreasonable" price increases.

Australian miner BHP Group Ltd. and Korean steelmaker Posco were among the biggest drags on the MSCI Asia Pacific Index on Thursday.

BHP’s South Flank project is expected to produce 145 million tonnes of iron ore each year.

BHP’s South Flank project in Western Australia will announce first production in the next few days, CEO Mike Henry said.

From copper to iron ore and oil, prices have rallied broadly in 2021, as the global economy emerges from the depths of the coronavirus pandemic and fires up demand.

Oil, as well as iron and iron ore boosted cargo movement in the first quarter.

Iron ore is Australia’s biggest export earner, and relations with Canberra have taken a turn for the worse in recent weeks.