According to metals research firm Heinz H Pariser, stainless steel makers, who consume more nickel than any other industry, may use 9.5% less of the metal in 2008.

Mr Heinz Pariser in a speech at a Metal Bulletin conference in Johannesburg said that “Production of nickel free stainless steel is taking place more and more. Nickel prices are unrealistically high.”

Mr Pariser said that “Nickel is more than double the price it was five years ago, even after slumping 55% since trading at a record USD 51,800 a tonne in May 2007. Nickel use in stainless steel may slip to about 715,000 tonnes in 2008.”

Mr Pariser said that “Higher chrome prices have so far had a minor impact on stainless steel prices.”

He added that “World stainless steel production may rise by a 10th next year to 33.6 million tonnes from about 30.4 million tonnes this year.”