China's exports of flat stainless steel products rebounded in July in response to a surge in demand from South Korea.

Exports are expected to increase further in August in response to a rising market, according to market participants.

"Nickel prices fell in June and Chinese exporters were offering very low prices. [Demand from South Korea] may continue rising in August," a stainless importer in Seoul said.

China shipped 166,695 tonnes of stainless flats in July, up 5.3% from June and 108% higher year-on-year, according to Chinese customs.

Exports to South Korea rose 23.2% from June to 29,481 tonnes, compared to a 4.6% rise for Taiwan, the largest buyer at 54,583 tonnes.

Not everyone felt the increase in export business, however.

"We actually feel that demand was not very good in May and June, and I don't know how such a high export number came about. Maybe it's because we mainly export flat products with widths above 1,000mm," a major stainless exporter in Shandong province said.

Chinese exporters, which usually accept orders one to two months before delivery, note that prices were rising at the end of June, attracting orders that should show up in August volumes.

Also in July, China imported 53,424 tonnes of stainless flats, down 4.6% month-on-month and 27.8% lower year-on-year, according to customs data.

Supply from Japan dropped 10.4% month-on-month to 20,133 tonnes.

China's net stainless exports surged to 611,604 tonnes in the first seven months of 2011, compared with 39,243 tonnes last year.