US stainless steel processor buying prices started to give ground on the base 304/316 grades with little activity ahead of the ferrous monthly trade and the expectations of weaker ferrous markets in July.
The weekly Davis Index for 201 solids inched up 1¢/lb 27¢/lb delivered processor yard on Wednesday but was flat for 301 solids at 38.4¢/lb for single truckloads.
The index for scrap 309 solids ticked up by 0.2¢/lb to 69.6¢/lb delivered and increased for 310 solids by 10.2¢/lb to $1.051/lb delivered. The Davis Index for 330 solids moved up by 0.3¢/lb to $1.685/lb delivered processor yard.
The index for 409/410 solids was better by $4.5/gt at $300.3/gt delivered processor yard and increased for 430 solids by $1/gt to $381/gt delivered.
The daily Davis Index for scrap 304 solids was slightly lower at 48.9¢/lb delivered processor yard, down by two-tenths of a cent, and dropped by the same amount for 316 solids at 67.8¢/lb for single truckloads delivered US processor.
The index for scrap 304 turnings dropped to 44.6¢/lb delivered from 44.8¢/lb delivered and moved down for 316 turnings by 0.2¢/lb to 59.7¢/lb delivered.
LME nickel prices dropped by $217/mt on Friday from a day earlier, with the official three-month LME nickel contract settling at $12,620/mt.
Stainless scrap remains tight, but processors are wary of laying in more inventory ahead of weaker ferrous markets and volatile exchange pricing. Offers for material into the processor’s yards increased over the past two days as word of the potential drop in ferrous scrap prices slides into market conversations.