High nickel prices turn industry on to chrome
Business reporters reported that the stainless steel industry was trying to cut nickel use in its production process due to the volatility and high price of the metal.
Mr Ian Christmas secretary general of the International Iron and Steel Institute during a mining summit in London said that "The steel industry has a very clear strategy of reducing its dependence on nickel." He said that "Stainless steel producers are pushing very hard to replace austenitic steel with ferrotic steel, which has a very small amount of nickel and was chromium based."
Nickel accounts for more than 60% of the cost of making austenitic steel, also known as 300 series stainless steel, the most widely used high grade steel.
Nickel rose to a record high of USD 51 800 a ton last year, but lost about 50% of its value in the following three months. Nickel futures are now about USD 33 000 a ton after the high and volatile price triggered production cutbacks.
Mr Christmas said that "The price of nickel has pushed a lot of innovation."
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