US stainless steel processor buying prices dropped by 0.4 – 0.5¢/lb across all grades on Thursday amid falling LME nickel prices.
The daily Davis Index for scrap 304 solids declined by half-a-penny to 57.5¢/lb delivered processor yard and fell for 316 solids to 77.3¢/lb from 77.7¢/lb for single truckloads.
The index for scrap 304 turnings also decreased by 0.5¢/lb to 52.5¢/lb delivered and declined by the same amount for 316 turnings to 68.5¢/lb delivered.
LME Nickel fell by $231/mt from Wednesday with the official three-month LME Nickel contract settling at $14,952/mt on Thursday. The official cash contract closed Thursday at $14,895/mt, down by $265/mt from Wednesday.
Stainless steel processor buying prices dropped across all grades in tandem with falling LME nickel prices. Some processors also fear that the drop of chrome benchmark pricing is affecting stainless steel buying prices. That said, demand from the mills remains steady because of which, processors have adopted a wait-and-see approach to gauge the market’s direction.