US stainless steel processor buying prices declined by 1.3-2¢/lb across all grades after the LME nickel market dropped on Monday.
The daily Davis Index for scrap 304 solids fell by 1.5¢/lb to 51.5¢/lb delivered processor yard and decreased for 316 solids by 1.8¢/lb to 72¢/lb for single truckloads.
The index for scrap 304 turnings dropped by 2¢/lb to 47¢/lb and moved down by 1.3/lb for 316 turnings to 65.2¢/lb delivered processor yard.
LME Nickel prices decreased by $141/mt from Friday with the official three-month LME Nickel contract settling at $15,148/mt on Monday. The official cash contract closed Monday at $15,113/mt, down by $143/mt from Friday.
The volatile LME nickel market has affected stainless steel processor buying prices, which have fluctuated in tandem with LME Nickel. Moreover, slowing demand from mills as they try to dispose of their inventory by the end of the year has also reduced stainless prices. Processors expect this trend to continue through November and December.