US stainless steel processor buying prices dropped slightly on Tuesday amid tight supply and a sideways LME Nickel market.
The daily Davis Index for scrap 304 solids decreased by 1¢/lb to 59¢/lb delivered processor yard and dropped by 0.8¢/lb for 316 solids to 80.2¢/lb for single truckloads.
The index for scrap 304 turnings inched down by 0.8¢/lb to 54.2¢/lb and declined by 1.2¢/lb for 316 turnings to 70.8¢/lb delivered processor yard.
LME Nickel prices inched up by $3/mt from Monday with the official three-month LME Nickel contract settling at $16,068/mt on Tuesday. The official cash contract closed Tuesday at $16,007/mt, down by $10/mt from Monday.
An unexpected increase in demand from mills has tightened the supply of stainless-steel scrap because of which, prices have increased over the past week. However, a stable LME Nickel market, with slight movements like the ones on Tuesday, could keep prices rangebound.