Rizhao, a coastal city in Shandong province, will increase its iron ore handling capacity and build the city into a competitive player in the global steel industry, said local authorities.

The Shandong Port Group Iron Ore Industry Development Conference was held in the city on Oct 29, gathering industry experts, scholars and company representatives to share insights on the development of the iron and steel industry.

The Shandong Port Group Iron Ore Industry Development Conference is held on Oct 29 in Rizhao, Shandong province. [Photo/qingdaonews.com]

Since the beginning of this year, China's iron ore imports have increased in both quantity and price, said Zhu Kedong, an analyst at the Mysteel Research institute in Shanghai. From January to September, China imported 868.46 million tons of iron ore, up 10.8 percent year-on-year.

Zhu said that iron ore arrivals at ports in Shandong province have also increased significantly since the start of the year. In the first three quarters, the imported ore volume in Shandong reached 263 million tons, a 19.9 percent increase of 41 million tons.

"The annual arrivals in the province are expected to be 340 million tons, an increase of 60 million tons year-on-year," said Zhu.

Zhi Hailei, a senior analyst at Shanghai Mysteel Research institute, said that international iron ore prices have been rising from January to September as some mines abroad have been affected by the epidemic.

"Iron ore prices, as measured by the China Iron and Steel Association index, are up 39.8 percent from February's low of $80 per tonne," said Zhi.

The Rizhao Port, a branch of Shandong Port Group [Photo/dzwww.com]

As a key steel manufacturing base in the country's coastal area, Rizhao's existing steel production capacity of 22 million tons will exceed 40 million tons by 2025. With the demand from hinterland steel companies and supporting enterprises, it is estimated that iron ore consumption will exceed 100 million tons.

"Rizhao has advantages including the good location of the port, the rapid development of the steel industry, high-quality steel bases and a complete industrial chain," said Zhi.

"We attach great importance to the logistics hub and strategic location of Rizhao Port," said Li Yidong, general manager of Shanxi Jianbang Group, adding the that company will add investments of 250 million yuan ($37.45 million) in Rizhao's Lanshan Port to build a ore treatment plant with a production capacity of 4 million tons.

The coastal scenery of Rizhao. [Photo/dzwww.com]