Baoshan Iron & Steel Co. and Shanxi Taigang Stainless Steel Co. may pass on raw materials costs to customers by introducing a surcharge on products from January, next year. Mr Wang Chengxue assistant to the GM of Baoshan’s stainless steel unit said in Taiyuan said that the surcharge will be pegged to the cost of nickel. Nickel for three month delivery on the London Metals Exchange surged to a closing record of USD 51,600 per metric tonnes on 4 May 2007. It has averaged 73% higher this YTD than the prior period. The May record price deterred steel producers from further purchases, leading to a 39% decline in price since and eroding the value of stockpiles bought earlier.
