The volume of imported scrap steel hit a record high of 334,000 tons in Zhangjiagang port in January, more than 18 times that of January 2008. Analysts believe that increased government spending to boost the economy has stimulated demand for steel and major local steel plants such as Shagang, Yonggang and Puxiang Stainless Steel have needed to import large quantities of raw materials to fulfil their order books. Also, for these plants, converting imported scrap steel in the production process is more cost effective than imported iron ore.

Plummeting ocean shipping prices have also contributed to the January surge in scrap steel volumes: several old vessels went direct to the scrap heap after their final journey to Zhangjiagang port.