Mr Ding Zhiqiang, analyst of Baosteel Institute of Economic Management, said on March 24th 2011 that growing competition of stainless steel industry among the world made industrial chain control very important.

As the largest nickel consumption country, the price of nickel in China was dominated by foreign countries, leaving a high market and industry risks for domestic stainless steel industry.

Therefore, China should explore how to gain independent pricing, to improve the industrial chain. For instance, financial instruments can be used to avoid fluctuating risks of nickel price.

According to Mr Ding, stainless steel will enter into an era of large scale competition, with some stainless steel giant gaining capacity of 4 million tonnes.

(Sourced from MySteel.net)
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