Stainless steel processor buying prices in the US declined across all grades Wednesday, despite LME Nickel prices rising.
The weekly Davis Index for 201 solids fell by 0.3¢/lb to 32.5¢/lb delivered processor yard on Wednesday while 301 solids dropped by 2¢/lb to 42.5¢/lb for single truckloads.
The index for scrap 309 solids also fell by 7.5¢/lb to 70¢/lb delivered, and declined for 310 solids by 10.5¢/lb to $1.07/lb delivered. The Davis Index for 330 solids decreased by a 18.5¢/lb to $1.73/lb delivered processor yard.
The index for 409/410 solids dropped by $1/gt to $306.5/gt delivered processor yard, while it fell by $11.8/gt to $373.2/gt for 430 solids delivered.
Stainless steel demand has decelerated over the last couple of weeks as the end of 2020 fast approaches, causing prices to decrease in recent weeks. However, increasing LME Nickel prices has pushed stainless steel buying prices up and balanced actual buying prices, with processors stating that they’ve seen little change. In the unlikely event that demand henceforward improves, prices would commensurately grow, according to some processors.
The daily Davis Indexes for scrap 304 and 316 solids respectively fell by 0.2¢/lb to 52.7¢/lb delivered processor yard and to 73.7¢/lb for single truckloads.
The index for scrap 304 turnings declined by 0.2¢/lb to 47.7¢/lb delivered, and by 0.3¢/lb for 316 turnings to 66¢/lb for single truckloads.
LME Nickel prices increased by $279/mt from Tuesday, with the official three-month LME Nickel contract settling at $16,101/mt on Wednesday. The official cash contract closed Wednesday at $16,064/mt, up by $273/mt from a day earlier.