Part A: Review(2018/10/8-2018/10/12)

From October 8, 2018 to October 12, 2018:the closing price of iron ore futures I1901 contract on Friday was 515 yuan, 19.5 Yuan higher than the closing price of the last trading day before the National Day holiday (2018/9/28)，the weekly increase of 3.94%, open interest is 670,918 lots. The highest price for this week is 519 yuan, and the lowest point is 490.5 yuan.

Part B: Market dynamics

1.Exchange

It is reported that the Singapore Exchange will list new iron ore derivatives in December based on the Brazilian iron ore fines price index of 65% of the data provider Fastmarkets MB. This will be the first derivative on the market to be based on high-grade iron ore.

2. Import

In September, iron ore imports increased by 4.61% to 93.471 million tons, up from 89.354 million tons in August, but a decrease of 9.1% from the record high of 102.83 million tons set in the same period last year.

Customs data released on October 12, 2018 showed that China's iron ore imports rose to the highest level in four months in September 2018, as steel mills choose to increase production before the winter production reduction policy is introduced.

3. Port

It is reported that, as of October 12, the domestic iron ore port stocks fell by 1.12% month-on-month to 143.57 million tons, a new low for the year.

4. Steel mill

According to data released by consulting firm Mysteel, the utilization rate of blast furnace capacity of Chinese steel mills rose to 68.23% in mid-September, the highest in two months, and has been around 68% since then, the reason is that steel mills have increased production before the release of production reduction policies.

In order to avoid large areas of haze in winter,Local governments are developing measures to reduce production. This may inhibit the operations of steel mills and the activities of downstream users., further weakening the demand for steel production raw materials such as iron ore.

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