Stainless Sector Losses Grip on the Whole Industry Chain

Baosteel said as global competition becomes more intense in the stainless steel sector, the focus of the sector's development is shifting from individual competition to the degree of penetration into the whole industry chain. China has become the world's largest consumer of nickel metal whose prices are currently dominated by foreign players, a situation that may pose a great adverse effect to the domestic stainless steel sector. There is still much to be done for the industry to set up and improve a sound risk management system and explore ways of avoiding latent risks with the help of any possible financial tools so as to make it more responsive to frequent swings in the nickel prices in the future.