For the first 10 months of 2009, Zhangjiagang’s imported waste steel increased by 887 per cent to 3.28m tons, according to the city’s Inspection and Quarantine Bureau. The total value of the imports increased four-fold to US$1.2bn.

Zhangjiagang is home to Jiangsu Shagang Group and Fengli Group, two major waste steel importers. Shagang is currently China’s largest electrical steel producer while Fengli is a major waste steel processer. The competitive price of imported waste steel, combined with low shipping prices and increasing demand for the two companies’ products, are contributing factors to the increased import volumes.

In a separate development, Mitsui OSK Lines has signed a 10-year iron ore transport contract with Jiangsu Shagang Group. MOL will transport iron ore from Australia and Brazil to the private Chinese company’s berth in Zhangjiagang.

A 207,000-tonne iron ore carrier, to be constructed for the contract, is scheduled for completion in late 2011.

Founded in 1975, Jiangsu Shagang is one of China’s leading steelmakers. In 2008, its annual steel production was 23.3m tonnes, and its annual iron ore imports totalled 16.34m tonnes.