US stainless steel processor buying prices declined for 316 solids and 304 turnings on Tuesday due to falling LME nickel prices.
The daily Davis Index for scrap 304 solids was flat at 79.5¢/lb delivered processor yard and dropped for 316 solids by 0.2¢/lb to $1.008/lb for single truckloads.
The index for scrap 304 turnings fell by 0.3¢/lb to 71.2¢/lb delivered and was unchanged for 316 turnings at 90¢/lb delivered processor yard.
LME nickel prices decreased by $468/mt from Monday with the official three-month LME Nickel contract settling at $19,254/mt on Tuesday. The official cash contract closed Tuesday at $19,226/mt, down by $463/mt from Monday.
Processors expect the stainless-steel processor buying prices to trend down after a month of increases after the LME Nickel market declined on Tuesday. However, it is unclear if the price declines will be rangebound as seen over the past two months since mill demand remains robust.