The commissioning of the second 400,000-DWT iron ore terminal at Dongjiakou Port, Qingdao, marks a critical milestone in China’s port infrastructure and signals a strategic shift in the regional distribution of seaborne iron ore imports. Dongjiakou is now the second port in China, after Zhoushan, and the first in Northern China, to operate a dual 400,000-DWT terminal configuration.
Impact of the New Terminal
The new terminal addresses the market’s continuous push for economies of scale via the use of Valemax (400,000 DWT) bulk carriers for the long-haul Brazil-China iron ore route.
Capacity and Efficiency
- Capacity Expansion: The original Dongjiakou terminal was operating near saturation (over 40 million metric tons [mln mt] handled in 2024 with 90% utilization). The new terminal adds an annual throughput capacity of 16 million metric tons, bringing the port’s total combined annual capacity to over 56 million metric tons.
- Logistical Security: This expansion effectively eliminates potential logistical bottlenecks, providing stable supply assurance to steel mills, particularly those in Northern China.
Reshaping Trade Patterns
The expansion is expected to impact the VLOC (Very Large Ore Carrier) and Capesize segments:
- VLOC/Valemax Direct Shipments: With more than 400,000-DWT terminals coming online, direct shipments from Brazil to China will become more frequent, improving efficiency and capitalizing on freight cost advantage VLOCs have over Capesizes on the Brazil–China route.
- Diminished Transshipment: The traditional necessity of using Vale’s ore blending and transshipment center in Teluk Rubiah, Malaysia, to split Valemax cargoes onto Capesizes for final, shorter-haul delivery to Chinese ports may diminish.
- Capesize Ton-Mile Impact: This shift will likely lead to fewer short-haul Capesize voyages between Teluk Rubiah and Chinese ports (9.2 mln mt shipped by Capesizes on this route in 2024), subtly reshaping and potentially reducing ton-mile demand for the Capesize segment in the Pacific basin.
Evolving Iron Ore Import Landscape
While China’s overall seaborne iron ore imports remained stable at 923 mln mt in the first three quarters of 2025 (a marginal 0.5% year-on-year drop), the distribution is far from uniform.
Regional Shift
The import structure is evolving, driven by domestic policies and regional steel mill expansion:
- Decline in North: Dalian, once a key gateway, recorded a significant 36% year-on-year decline in imports (6.6 mln mt in the first three quarters of 2025). This is partly linked to national schemes, such as the “Cornerstone” program, which encourages greater domestic iron ore utilization and supports the local mining activities of major steel companies like Ansteel.
- Growth in South: Southern ports like Zhanjiang and Fangcheng saw throughput rise by 12% and 23%, respectively, reflecting the broader trend of Chinese steel mills expanding their presence in the Guangxi and Guangdong regions.
Dongjiakou’s new dual terminal aims to enhance the competitiveness of North China’s imports, potentially slowing the ongoing southward shift of import ports and ensuring a stable, efficient supply chain for northern steel producers. The forward narrative for China’s iron ore imports is now centered on optimizing distribution and efficiency, not just volume.
Did you subscribe to our daily Newsletter?
It’s Free Click here to Subscribe!
Source: Breakwave Advisors
