US stainless steel processor buying prices dropped for the second consecutive day on Wednesday.
The daily Davis Index for 304 scrap solids dropped to 52.7¢/lb from 53.6¢/lb delivered processor yard and 316 solids dropped to 72.7¢/lb from 73.6¢/lb for single truckloads.
The index for scrap 304 turnings held at 47.7¢/lb but 316 turnings dropped by 3.6¢ to 63¢/lb from 66.6¢/lb on Wednesday.
US stainless steel processor buying prices for 201 solids also dropped. The weekly Davis Index for 201 solids decreased to 31¢/lb from 31.2¢/lb, while 301 solids fell by 1.9¢ to 41¢/lb on Wednesday. The index for scrap 309 solids decreased by 2.7¢ to 72.7¢/lb while scrap 310 solids also decreased to $1.13/lb on Wednesday from $1.14/lb last week.
Processors saw a significant increase in pricing at the start of last week and since then, prices have remained flat with a downward pressure. However, high demand for stainless steel processors from mills could keep prices stable over next week despite fluctuations on LME nickel, according to market participants.
LME nickel prices fell by $405/mt from Tuesday with the official three-month LME Nickel contract settling at $12,485/mt on Wednesday. The official cash contract closed Wednesday at $12,435/mt, down by $400/mt from Tuesday.