Report Summary 1) Industry Investment Rating No industry investment rating is provided in the report. 2) Core View - Recent macro - drivers are positive, leading to an overall increase in black - series prices. Although the supply - demand contradiction of iron ore itself is weak, the pressure of profit contraction in the industrial chain and the structural contradiction of finished product inventory limit the upward price movement. However, due to strong domestic demand resilience, a strengthening basis of iron ore, and improved market sentiment, the price is expected to continue to rebound [2][3]. - The price of iron ore will fluctuate within a range. The main contract of Dalian iron ore will be in the range of 760 - 800 yuan/ton, corresponding to an outer - market price of about 103 - 107 US dollars/ton [3]. 3) Summary by Related Contents Logic - The equity and commodity markets have warmed up. Sino - US trade relations are expected to ease as trade consultations will be held from October 24th to 27th in Malaysia and a new round of trade negotiations on issues like rare earths, fentanyl, and soybeans may take place around the APEC meeting. Domestically, the 15th Five - Year Plan focuses on technological self - reliance, new - quality productivity, consumption boosting, and high - quality real estate development, which boosts market sentiment [3]. Supply - Outer - mine shipments have increased slightly month - on - month. Shipments from Rio Tinto and FMG in Australia have increased significantly, while those from Brazil are relatively stable. After reaching a new high this year, the arrival volume has returned to the median level. Overall, the support from the supply side continues to weaken [3]. Demand - Domestic demand has declined month - on - month, mainly due to environmental protection measures in Hebei causing some steel mills to shut down or reduce loads. Although the blast furnace operating rate has increased this week, iron - water production has decreased. With the continuous decline of finished product prices, the loss range of steel mills has expanded, and the profitability rate has dropped to the lowest level this year. The blast furnace operating rate and profitability rate are falling due to environmental protection and weak terminal demand, but the decline slope is not steep. Considering the seasonal replenishment cycle of steel mills, domestic iron ore demand still shows resilience [3]. Inventory - The inventory level at steel mills has increased slightly month - on - month as they enter the seasonal replenishment cycle. With the arrival volume at a high level in the same period and the decline of port clearance volume due to weather, port inventory has continued to accumulate [3]. Strategy - Adopt interval operation and use covered call options [4].