US stainless steel processor inched down on Tuesday despite rising LME nickel prices, due to uncertainty surrounding the rising numbers of COVID-19 cases.
The daily Davis Index for scrap 304 solids decreased to 49.6¢/lb from 49.8¢/lb delivered processor yard, while it fell for 316 solids to 69.6¢/lb from 69.8¢/lb for single truckloads.
The index for scrap 304 turnings also declined to 46.6¢/lb from 46.7¢/lb and fell for 316 turnings to 60¢/lb from 60.1¢/lb delivered.
LME nickel prices rose $180/mt from Monday with the official three-month LME nickel contract settling at $13,367/mt on Tuesday. The official cash contract closed Tuesday at $13,315/mt, up by $153/mt from Monday.
Stainless steel prices have moved sideways this week, continuing a trend seen in this market over the past couple of weeks as processors are unable to gauge if demand will rise or fall amidst uncertainty surrounding the rising number of COVID-19 infections across the country. Market participants are in fact skeptical about how the market might look in August due to these factors.