No tarnish on prospects for stainless steel

The stainless steel industry in China will continue to expand during the country's 12th Five-Year-Plan (2011-15) as a result of incentives stemming from ongoing urbanization and construction, experts said on Wednesday.

Although the steel industry has had to contend with an increase in the cost of raw materials and many domestic steel mills are faced with losses in the first quarter of this year, specialty steel companies, such as makers of stainless steel, are still doing well.

"As the biggest stainless steel producer and consumer in the world, China will have huge market potential in the coming years," said Li Cheng, honorary chairman of the Stainless Steel Council of China Special Steel Enterprises Association, during a forum held by the Nickel Institute, a nonprofit international organization.