US stainless steel processor buying prices on Monday were flat to down depending on grade after the three-month LME nickel market jumped by almost $49/mt from Friday’s close.
The daily Davis Index for scrap 304 solids rose by 0.3¢/lb to 53.9¢/lb delivered processor yard, while 316 solids inched up by one-tenth of a penny to 74.9¢/lb for single truckloads.
The index for scrap 304 turnings, however, declined by 1.4¢/lb to 49¢/lb delivered and dropped by 2.2¢/lb for 316 turnings to 65.7¢/lb delivered.
LME Nickel prices increased by $49/mt from $15,208/mt on Oct 9 to $15,257/mt on Monday.
Suppliers are looking to the LME Nickel market in hopes of better numbers this week. However, flows and inventories are adequate against slowing demand because of which the market seems balanced for now. Moving forward, processors see more chances of a downside than up when buying scrap, which will limit price increases.