Core Insights - The optimization and launch of the RMB iron ore swap central counterparty clearing business is significant for the high-quality development of the iron ore industry [1][2] Group 1: Business Operations - On the first day of operation, the Shanghai Clearing House processed 22 RMB iron ore swap transactions, totaling a clearing amount of 315 million RMB, covering agreements until February 2026 [1] - The participating institutions included major companies such as China Securities, Guotai Junan Securities, and Huatai Securities, with services provided by SPDB and CCB for agency clearing [1] Group 2: Industry Impact - The new clearing service enriches risk management tools, providing comprehensive coverage for the risk management needs of iron ore products [2] - It enhances price discovery and strengthens pricing power by increasing the influence of the RMB spot price index and providing forward pricing for 12 months [2] - The professional risk management system aims to help iron ore enterprises manage potential credit and market risks effectively [2] Group 3: Future Plans - The Shanghai Clearing House plans to continue focusing on serving the real economy, aiming to become a major centralized clearing institution for OTC bulk commodity trading [2] - Ongoing efforts will include product development, service optimization, and platform construction, while also addressing potential regional or systemic risks [2]

Report Summary 1. Report Industry Investment Rating - No investment rating information is provided in the report. 2. Core View of the Report - The report expects the iron ore market to be mainly in a volatile state in the short - term. The upper limit of the important pressure level for the main 2601 contract is 810, and the support level is 750 [3]. 3. Summary by Relevant Catalog Iron Ore Market Conditions - In the night session on Wednesday, iron ore closed down [3]. Important Information - In mid - November 2025, the steel inventory of key steel enterprises was 15.61 million tons, a 0.8% increase from the previous ten - day period, a 26.3% increase from the beginning of the year, a 5.9% decrease from the same ten - day period last month, a 0.4% increase from the same ten - day period last year, and a 1.8% increase from the same ten - day period the year before last [3]. - On November 26, 5 steel enterprises, including Henan Minyuan Iron and Steel Group Co., Ltd., carried out the publicity of the progress of ultra - low emission transformation and assessment and monitoring. So far, 230 steel enterprises have been publicly announced on the website of the China Iron and Steel Association [3]. - On November 25, the Shanghai Clearing House completed the optimization of the agreement elements of the RMB iron ore swap central counterparty clearing business. The RMB iron ore swap is based on the average spot price of imported iron ore (60.8% grade PB powder) at Rizhao and Qingdao ports, with cash settlement and denominated, cleared, and settled in RMB [3]. Market Logic - During the macro - policy vacuum period, attention should be paid to the policy expectations brought by the Central Economic Work Conference in December. According to data from Zhaogang.com, the production of screw coils and five major steel products decreased this week. The daily output of molten iron last week was 2.3628 million tons, and a reduction is expected this week. The arrival of domestic iron ore is low, but the shipment is active. The foreign port inventory is at the highest level since the fourth quarter [3]. Trading Strategy - The view remains unchanged: it is expected to be mainly volatile in the short - term. The upper important pressure level for the main 2601 contract is 810, and the support level is 750 [3].