[Ferro-alloys.com]HSBC Bank expected that in 2015, global stainless steel output would increase by 4% and in 2016 it would further improved by 4.1%. According to the bank, the main driving force would come from China. In addition, along with the growth of Chinese economy, the stainless steel demand of China would also be enlarged.

In the latest report of HSBC, during 2013 and 2018, the Compound annual growth rate(CAGR) of global stainless steel demand might reach 4.6%, which would bring support to the nickel demand. During the period, China and American demand of stainless steel would grow strongly with CAGR of 6.6% and 6.3% respectively.

HSBC said, restricted by the supply, nickel market prediction was seen optimistic. The bank expected that in 2016 the nickel price would increase to USD22000/mt while in 2017 it would decline to USD21000/mt along with the commissioning of the ferronickel project in Indonesia.

Besides, the growth of the stainless steel would also benefit to the ferrochrome demand while HSBC expected that the FeCr price would still be poor for the surplus supply. It was predicted that in 2015 FeCr price might declined to USD1.12/lb while in 2016 it would be USD1.18/lb.

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• [Editor:Juan]