US stainless steel processor buying prices for 316 solids and 304 turnings remained unchanged on Thursday amid dropping LME nickel prices.
The daily Davis Index for scrap 304 solids inched up to 57.8¢/lb from 57.5¢/lb delivered processor yard and remained unchanged for 316 solids at 77¢/lb for single truckloads.
The index for scrap 304 turnings was also flat at 53¢/lb and rose for 316 turnings to 69.8¢/lb from 68.5¢/lb delivered.
LME nickel prices dropped by $487/mt from Wednesday with the official three-month LME Nickel contract settling at $15,184/mt on Thursday. The official cash contract closed Thursday at $15,135/mt, down by $523/mt from Thursday.
Processors are willing to buy material despite the significant decline in LME nickel prices on Thursday because of continued demand from the domestic mills. The two trends balanced the market on Thursday causing very little movement in processor buying rates.