Economy

China stainless steel demand to grow 5-7%

(Agencies)
Updated: 2011-06-07 14:17

Baosteel's stainless steel unit expects stainless steel consumption in China to grow 5 to 7 percent per year over the next five to 10 years, Lou Dingbo, president of the unit, said on Tuesday.

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Lou told a conference held by Metal Bulletin in Shanghai that Chinese demand for stainless steel would remain resilient even as the government tries to curb overheating.

"I believe that after China's tightening measures have been carried out to a certain point and GDP has grown to a certain point, per capita demand for stainless steel will rise," he said.

"I foresee that in the next five to 10 years, consumption of stainless steel will increase by a moderate rate of 5 to 7 percent."

Lou noted that global growth for stainless steel would be driven by China and India, while demand in Europe and the United States was likely to slow.

Stainless steel is used in white goods such as refrigerators and washing machines and in construction. It accounts for about 70 percent of global nickel demand.

China is expected to produce 200,000 tonnes of nickel this year, up by about 20 percent compared with last year, with several new projects expected to come on stream.

However, despite concerted efforts by many steel firms to acquire raw material deposits in order to reduce costs and improve supply security, Baosteel Stainless Steel has no plans to invest in nickel assets, Lou said.