UPDATE 2-Spain's Acerinox says demand solid, prices static

(Adds that chief executive has been named chairman, updates share price)

By Ben Harding

MADRID, May 27 (Reuters) - Spain's Acerinox (ACX.MC), the world's biggest stainless steel producer, said on Tuesday demand for its products had not been hit by global economic turmoil, but added that prices had stopped rising and would be stable.

Last year, stainless steel prices whipsawed from their highest in a decade to their lowest as the price of key ingredient nickel swung wildly.

However, analysts now point to the cooling world economy as the main threat to sales of stainless steel which is used in everything from kitchen sinks to telephone boxes and jet engines.

"We have a good order book. We still haven't felt any impact from this crisis," Chief Executive Rafael Naranjo told a news conference before the company's annual shareholders' meeting.

Finnish rival Outokumpu (OUT1V.HE) warned last month of an increasing risk that economic uncertainty could affect both demand and prices.

Naranjo said it was very likely that base prices -- what customers pay before an additional alloy surcharge -- would stay at around 1,350-1,380 euros/tonne in coming months, having risen in line with company forecasts between January and May.

"From January to April/May, prices have risen at the pace we expected. From May onwards they have not. Yes, we thought that they would continue to improve ... though they have not fallen either."

"It's not bad if they stay the same, margins are reasonable."

In February Naranjo said he hoped prices would rise to 1,550 euros a tonne by the end of the second quarter.

At the shareholders meeting, he was also named chairman, taking over from Jose Maria Aguirre Gonzalez.

In a statement to the Spanish stock market regulator, Acerinox said the outgoing chairman had completed his term and could not be re-elected.

Shares in Acerinox closed 0.5 percent down at 16.81 euros on Tuesday, compared with a 1 percent fall in Spain's blue-chip Ibex index .IBEX. The stock has traded flat in the year to date against an 11 percent fall in the Ibex-35.

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At home, Naranjo said Spain's housing sector crisis had led to a sharp slowdown in sales -- particularly to household appliance makers, however this had been compensated elsewhere.