US stainless steel processor buying prices were mixed on Monday following softening demand and a rise in LME Nickel prices.
The daily Davis Index for scrap 304 solids fell by 2.1¢/lb to 72.7¢/lb delivered processor yard and was up for 316 solids by 0.3¢/lb to 95¢/lb for single truckloads.
Scrap 304 turnings declined by 4.1¢/lb to 66.7¢/lb delivered and increased by 2.5¢/lb for 316 turnings to 87¢/lb delivered processor yard.
LME nickel prices increased by $299/mt from Friday with the official three-month LME Nickel contract settling at $16,495/mt on Monday. The official cash contract closed Monday at $16,449/mt, up by $299/mt from Friday.
Participants expect demand to vary until the end of the second quarter due to a seasonal fall in demand as well as the uncertainty stemming from rising COVID-19 cases especially, in the Midwest. An excess supply of stainless steel scrap is also putting downward pressure on prices. That said, some participants are still witnessing strong demand from big mills as they try to gauge the market’s movements.