US stainless steel processor buying prices fell across all grades on Monday after market sentiment turned cautious.
The daily Davis Index for 304 solids inched down by 0.7¢/lb to 89.3¢/lb delivered processor yard and decreased for 316 solids by 0.9¢/lb to $1.203/lb for single truckloads.
Scrap 304 turnings inched down by 0.5¢/lb to 85¢/lb delivered and dropped for 316 turnings by 0.8¢/lb to $1.108/lb delivered processor yard.
The LME was closed on Monday for the summer bank holiday in the UK and will resume Tuesday. LME nickel prices were up from Thursday by $200/mt with the official three-month LME Nickel contract settling at $19,005/mt on Friday. The official cash contract closed Friday at $18,914/mt, up by $46/mt from Thursday.
Stainless steel scrap prices have moved in tandem with volatile LME nickel prices over the past two weeks. However, the market was quiet on Monday as participants awaited LME Nickel to reopen on Tuesday before assessing stainless scrap pricing. Moreover, there is little clarity on short- and medium-term demand trends because of which more processors are adopting a wait-and-watch approach before making further buying decisions.