US stainless steel processor buying prices dropped significantly on Thursday after mills reduced their buying outlook for September.
The daily Davis Index for 304 solids dropped by 6.4¢/lb to 86.8¢/lb delivered processor yard and decreased for 316 solids by 2.6¢/lb to $1.19/lb for single truckloads.
Scrap 304 turnings fell by 3.4¢/lb to 84.3¢/lb delivered and declined for 316 turnings by 1.2¢/lb to 1.09¢/lb, delivered processor yard.
LME nickel prices increased by $125/mt from Wednesday with the official three-month LME Nickel contract settling at $19,385/mt on Thursday. The official cash contract closed Thursday at $19,440/mt, down by $8/mt from Wednesday.
A seasonal softness in demand has crept into the market after mills lowered their buying outlook for the next month. This trend is expected to reverse the upswing in stainless steel processor buying prices that was witnessed in July. Stainless steel scrap supply at scrapyards is also expected to increase because of weakening demand and put downward pressure on prices.