China Stainless Steel Use Seen up 5 pct in 2010

SHANGHAI, May 26 -- China's apparent consumption of stainless steel, the main driver of the country's nickel demand, is expected to rise by 5 percent in 2010, Lou Dingbo, president of Baosteel's (600019.SS: Quote) Stainless Steel Business Unit, said on Wednesday.

Lou, speaking to reporters on the sidelines of a conference in Shanghai, said the growth rate in 2010 would not be as strong as last year, but he did not give a figure for 2009.

Apparent consumption fell sharply in 2007 and 2008, he said. Although it rebounded last year, it did not return to the level of consumption seen in 2006.

He also said Baosteel might need to use more nickel pig iron this year because its cheaper than refined nickel. Last year, the entire industry in China used nickel pig iron equivalent to 100,000 tonnes of nickel, he said.