“(Moderating margins) have influenced customers’ preferences for specific products and created increasing demand for lower-grade iron ore,” said Danny Goeman, Fortescue sales and marketing director, at a conference in Beijing on Wednesday.Mills are also considering alternatives to iron ore such as iron sands.The Jiangxi mill purchase manager said it bought iron sand from Indonesia with 56 percent iron content to save on costs.“Non-mainstream products suddenly became very hot, although more people are asking rather than making actual purchases,” said a manager at a major commodities trading house in eastern Zhejiang province.