No Tarnish On Prospects For Stainless Steel In China
Nippon Steel & Sumikin Stainless Steel Corporation the largest stainless steel producer in Japan announced to cut the purchasing prices of the nickel alloyed stainless steel scraps by JPY 5,000 per tonne for May deliveries effective on May 8th 2012. It’s said that NSSC decided to cut the prices of nickel alloyed stainless steel scrap for May as it forecasted that the scrap price may decrease further due to the sluggish nickel price.
Mr Li Cheng honorary chairman of the Stainless Steel Council of China Special Steel Enterprises Association said that "As the biggest stainless steel producer and consumer in the world, China will have huge market potential in the coming years." The stainless steel industry in China will continue to expand during the country's 12th Five Year-Plan (2011-15) as a result of incentives stemming from ongoing urbanization and construction.
Experts said that although the steel industry has had to contend with an increase in the cost of raw materials and many domestic steel mills are faced with losses in the Q1 of this year, specialty steel companies such as makers of stainless steel bar are still doing well.
Companies in the nickel and stainless steel industry must keep a balance between resources and supply, Mr Kevin Bradley president of the institute which represents the interests of 26 companies that produce more than 75% of the world's nickel each year.3.43 million tonnes of stainless steel were produced in China in the Q1 of the year, 357,000 tonnes more than in the same period last year. Also during the Q1 the country used 2.77 million tonnes of stainless steel, 12% more than in the same period of 2011.
Mr Mika Seitovirta chief executive of the company said that we believe that there is a double digit growth rate annually in the high end stainless steel market in China. Up to 11% of the company's revenues come from Asia and China contributes a large part of that.
Baosteel invested CNY 20 billion into Fuzhou Desheng Stainless Steel project gaining 70% shares of Fujian Desheng Nickel Industry Co Ltd. Desheng Nickel Industry Co Ltd aims to China most competitive stainless steel enterprise after reorganization.
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