US stainless steel processor buying prices decreased by 1-3¢/lb across all grades amid weakening mill demand and falling LME nickel prices on Thursday.
The daily Davis Index for scrap 304 solids declined by 2.8¢/lb to 55.2¢/lb delivered processor yard and dropped by 2.4¢/lb for 316 solids to 75.7¢/lb for single truckloads.
The index for scrap 304 turnings fell by 1.9¢/lb to 50.2¢/lb delivered and inched down by more than half-a-penny for 316 turnings to 68.2¢/lb delivered.
LME Nickel decreased by $194/mt from Wednesday with the official three-month LME Nickel contract settling at $14,220/mt on Thursday. The official cash contract closed Thursday at $14,179/mt, down by $186/mt from Wednesday.
Processors attributed Thursday’s decline in prices, after the sideways trend of the past few weeks, to a fall in sales to domestic mills. Moving forward participants do not expect the October sales to be as strong as initially expected. Inventory levels could also drop faster towards the end of this year compared with the previous years, according to some processors.