US stainless steel processor buying prices declined by 1-3¢/lb on weaker demand and dropping LME nickel prices.
The daily Davis Index for scrap 304 solids fell by 1¢/lb to 73.5¢/lb delivered processor yard and declined for 316 solids by 2.3¢/lb to 93.5¢/lb for single truckloads.
Scrap 304 turnings fell by a penny to 69.5¢/lb delivered and decreased by 3.7¢/lb for 316 turnings to 84¢/lb delivered processor yard.
LME nickel prices declined by $339/mt from Friday with the official three-month LME Nickel contract settling at $16,120/mt on Monday. The official cash contract closed Monday at $16,063/mt, down by $348/mt from Friday.
Demand potential for stainless steel scrap has weakened considerably this month with the sentiment likely to prevail in May after the market witnessed robust demand in the first quarter. Processors are also becoming cautious in their purchases to avoid inventory build up leading to subdued trade in the stainless scrap market.