Imagine I have a malleable metal rectangular rod (such as an Aluminum rod). Suppose either I stick this rod into a wall or I place it between two extremely heavy blocks so that one end of the rod is fixed and the other end is sticking out. Next, suppose I place a mass $m$ box on the end that is sticking out. The initial potential energy of the box is $U_{0} = mgh_{0}$ where $h_{0}$ is the altitude of the center of mass of the box relative to some reference level. Assuming the box is sufficiently heavy, when I let go of the box, it bends the metal rod, and then the box falls to the floor.
If the metal rod were not in the way, the box would have had energy $KE = mg(h_{0}-h_{1})$ right before hitting the ground. However, because the metal rod was in the way, the metal rod slowed the box's fall to some extent, and thus the box actually has energy $KE < mg(h_{0} - h_{1})$ right before hitting the ground.
My question is, where did the energy go? The metal rod doesn't store any potential energy, it doesn't rebound back to its original shape like a spring, and it doesn't have any apparent kinetic energy, so it's not clear how conservation of energy works here. How do we understand this scenario?