US stainless steel processor buying prices trended sideways after LME Nickel prices slipped on Wednesday.
The weekly Davis Index for 201 solids was flat at 45¢/lb delivered processor yard and remained unchanged for 301 solids at 59.5¢/lb for single truckloads.
The index for scrap 309 solids increased by 0.5¢/lb to 94.5¢/lb delivered and settled unchanged at $1.445/lb delivered for 310 solids. The weekly Davis Index for 330 solids was also flat at $2.288/lb delivered processor yard.
The index for 409/410 solids remained at $445/gt delivered processor yard after moving down by $18.50/gt last week and was flat at $551.5/gt for 430 solids delivered.
Participants believe that the LME nickel market is trying to find the balance between the strengthening demand for the metal and the race to supply it to the electric vehicle market, which is expected to become the biggest consumers of nickel in the medium to long term. Still, the month-long volatility in the LME Nickel market has made processors cautious with their stainless-steel scrap purchases, though the continuing demand from mills will keep prices rangebound in the near term.
The daily Davis Index for scrap 304 solids decreased by 1.5¢/lb to 69.2¢/lb delivered processor yard and declined by 1.4¢/lb to 92.9¢/lb for single truckloads for 316 solids.
The index for scrap 304 turnings fell by 0.3¢/lb to 61.7¢/lb delivered and remained unchanged at 82.7¢/lb delivered for 316 turnings.
LME nickel prices decreased by $134/mt from Tuesday with the official three-month LME Nickel contract settling at $16,047/mt on Wednesday. The official cash contract closed Wednesday at $15,988/mt down by $143/mt from Tuesday.