US stainless steel processor buying prices were rangebound on Tuesday on falling LME nickel prices.
The daily Davis Index for scrap 304 solids was flat at 79.5¢/lb delivered processor yard and declined for 316 solids by 0.5¢/lb to $1.015/lb for single truckloads.
The index for scrap 304 turnings also dropped by 0.5¢/lb to 73¢/lb delivered and slipped by 0.3¢/lb for 316 turnings to 92.2¢/lb delivered processor yard.
LME nickel prices dropped by $40/mt from Monday with the official three-month LME Nickel contract settling at $18,635/mt on Tuesday. The official cash contract closed Tuesday at $18,580/mt, down by $75/mt from Monday.
The strong demand from domestic stainless-steel mills has held processor buying prices from steeper declines despite the softening in the LME Nickel market. Still, processors are looking for more clarity on price movements with domestic ferrous trading for March expected to begin this week at $30-50/gt above February settled prices.