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Thursday August 30, 7:00 PMChina's Baosteel says to produce more low-nickel steelSHANGHAI, Aug 30 (Reuters) - Baoshan Iron and Steel Co , China's second-largest stainless steel producer, said on Thursday that it would produce more low-nickel stainless steel to meet rising demand in the second half of 2007."We will try to maintain the portion of ferritic stainless steel above 50 percent in the second half," the company's board secretary, Chen Ying, said in an online briefing after the company announced first-half earnings on Wednesday. The country's largest steel maker said on Wednesday that production of low-nickel stainless steel, known as ferritic stainless steel, accounted for 41 percent of its total stainless output in the first half, up from 28 percent in 2006. Global stainless steel makers have been struggling to increase their ferritic stainless steel production in response to rising prices of nickel, a major raw material. The most popular 304 grade in the 300 series, or austenitic stainless steel, normally contains 8 to 10 percent nickel, but ferritic stainless steel, or 400 series, contains 1 percent or less nickel. International nickel prices hit an all-time high of $51,800 a tonne in May. They subsequently pulled back, trading at $28,250 on Thursday. "Although there is a major correction in nickel prices, the demand for ferritic stainless steel remains strong due to its production cost advantage and technical developments," Chen said. China produced 5.3 million tonnes of crude stainless steel last year, up 2.14 million tonnes, or 68 percent, from 2005. An unusually high percentage, more than 20 percent, of last year's output was of a low-nickel variety. That portion was even higher, as much as 30 percent, at the nation's premier stainless steel firms such as Baosteel and the country's largest producer, Taiyuan Iron and Steel . |
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