2021 is the first year of the "14th Five-Year Plan", the strategic planning of double control of energy consumption and peak carbon emission has a far-reaching impact on the steel industry. In recent years, under the premise of iron ore valuation has reached a historical high, affected by the expected impact of crude steel reduction target, iron ore long-term demand will be greatly compressed, market uncertainty increases, leading to enterprises facing the risk of inventory depreciation after expected limit-production came true and iron ore price dropped. In this context, enterprises in relevant industry chain have an increasingly urgent need to participate in the risk management of derivatives market.

It is worth noting that the domestic iron ore derivatives system is relatively complete, including both over-the-counter futures, options and other derivatives, as well as off-exchange business including commodity swap, over-the-counter options, standard and non-standard warehouse receipts. In particular, iron ore on-exchange options listed in 2019 have the advantage of relatively less capital occupation, rich and flexible hedging strategies, and are gradually favored by enterprises.