Stainless steel manufacturers using less nickel

Nickel Investing News reports nickel prices remain low as manufacturers of stainless steel are using less nickel.

China’s stainless steel producers are buying less nickel as a result of shrinking stainless demand, and at the same time the companies are making more products with low nickel content. Production of the rust proof metal is likely to rise 10 per cent in 2008 to almost 8 million tonnes, outpacing demand of 7 million tonnes. This is a result of Chinese stainless steelmakers expanding capacity faster than demand growth, depressing prices even as the costs of materials including iron ore and ferrochrome surged to records. The nation’s stainless steel capacity is one third larger than its output.

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