Stainless steel producers have taken on board customer backlash against the rising cost of nickel. Mills are now taking seriously market demand for low or non-nickel grades. Posco has launched a nickel free stainless steel into its portfolio. This follows similar actions earlier by Japanese producers. Outokumpu, which has traditionally been mainly a supplier of austenitic grades, is to increase its production of ferritic types. This has involved a significant investment in new equipment. Output of ferritic grades is also to be expanded from the new melting shop at Lianzhong, in China. The growth in nickel demand in the future is likely to be slower than the overall expansion of the stainless steel sector. This is even more probable now that the producers are investing in new facilities to manufacture ferritic specifications. This fresh capacity will be actively promoted by the mills, which was not the case in the past.
