Ten millions iron ore were detained in Qingdao port, one of the largest ports in Shandong province used to account for 14 percent of China’s total imports of iron ore.

Anonymous source told Souther Weekend that there are about 15 million iron ore stuck in the port, for which they have to remove the port office to pile up.

China was the biggest steel market in the world with the average demand growth of 15% in the past ten years. In 2011, steel production in China accouted for more than 40% of the world.

However, according to data released by China Federation of Logistics and Purchasing(CFLP), Chinese steel industry PMI index decreased to 48.8, 6.9 points lower than the figure of last month.

Earnings statement of Q1 2012 released by China Iron & Steel Association (CISA) also shows that the whole steel industry resulted in a loss for the first time since 2000.

Liu Yukun, the chairman of a Qingdao iron ore importing company, said that he lost 10 billion yuan in September 2011, because the price decrease within one month of transportation.

"It was 180 dollars per ton in Australia port, but when arriving at Qingdao port one month later, the price decreased to 130 dollars," said Liu.

Facing a sharply decreased demand, steel groups began to transfer to other fields to gain profits. Baosteel group, the third biggest steel group in the world, was reported that half of its profits last year was not from steel production and sales line. Another big group, Wuhan Iron & Steel Croup Co. shocked the society by its plan to start pig farming with 30 billion yuan in next five years.

Wang Guoqing, the deputy director of Langge Iron and Steel told CCTV that steel industry got no momentum to grow since downstream industries like petal products, device manufacturing, automobile, ships and railways grew slowely.

He expected a better situation due to the reacceleration of infrastructure construction and policies to encourage automobile and home appliance purchases in the rural areas.

"But these temporary stimulas may not solve the problems once for all," he added.