US stainless steel processor buying prices decline on Thursday in tandem with falling LME nickel prices.
The daily Davis Index for scrap 304 solids dropped by 1.4¢/lb to 76.3¢/lb delivered processor yard and inched down for 316 solids by 0.1¢/lb to 98.7¢/lb for single truckloads.
Scrap 304 turnings decreased by 0.3¢/lb to 72.7¢/lb delivered and fell for 316 turnings by 0.3¢/lb to 89.7¢/lb delivered processor yard.
LME Nickel prices dropped by $726/mt from Wednesday with the official three-month LME Nickel contract settling at $17,216/mt on Thursday. The official cash contract closed Thursday at $17,180/mt, down by $752/mt from Wednesday.
Processors are purchasing material cautiously due to the declining LME Nickel process and mixed demand from mills. Still, the varied market sentiments have kept stainless steel processor buying prices from declining too steeply. Processors are now trying to gauge the market’s demand going into the summer season.