Chinese industry is feeling the pinch while the iron ore price will likely grow this year. [CFP]

Steel demand is expected to go up by 8 to 10 percent this year, said Zhu Jimin, chairman of Shougang Group at the Asia Mining Congress in Singapore on Wednesday. The Beijing-based company is the seventh biggest steelmaker in China by output.

The nation's $586 billion stimulus package has significantly boosted steel demand especially from automobile firms, home-appliance manufacturers and builders.

China imported 630 million tons of iron ore in 2009, up 41.6 percent from 2008, according to official data.

The steel lobby, China Iron and Steel Association (CISA), has for long strived for a unified iron ore price for all imports to regulate the market, and to erase the differences between long-term and spot prices.

Under the suggested plan, agents can levy a commission of 3 to 5 percent on the total iron ore import charges collected.

Luo Bingsheng, vice-president of CISA, reiterated last month that promoting the agent system at a unified price for iron ore will be the primary target for CISA this year, and the association has already won support from the government.

Hu Kai, an analyst at Umetal, a steel consulting firm, said such measures alone couldn't solve the problems fundementally.

China needs to control steel output, enhance exploration of domestic mines and increase investment in overseas mining resources, said Hu.