The reason for Baosteel developing ultra-pure ferritic stainless steel products includes two factors. Firstly, it is for saving nickel resources. Nickel has excellent performances such as energy storage, anti-corrosion, wear resistance, high temperature resistance and high strength. It is a key raw material for stainless steel, rechargeable batteries, electroplating, auto parts, key tools, military equipment etc. production. Also, it is an important strategic material for the development of the national economy. While, nickel resources are in a relatively tight state and rely heavily on imported resources. In this case, China domestic stainless steel output raises a lot, which is main source of nickel consumption. Of this, ferritic stainless steel development and expanding application becomes the main trend.

Secondly, localization contributes to ferritic stainless steel development of Baosteel. In 2006, autos, advanced household appliance, and construction mainly relied on import. However, at that time, it was predicted that there would be huge room for development of domestic stainless steel products in the future. The development of ultra-pure ferritic stainless steel can save a lot of nickel resources.