US stainless steel processor buying prices fell across all grades in tandem with decreasing LME nickel prices on Tuesday.
The daily Davis Index for scrap 304 solids dropped by 0.1¢/lb to 71.7¢/lb and fell for 316 solids by 0.2¢/lb to 92.5¢/lb delivered processor yard for single truckloads.
The index for scrap 304 turnings was down by 0.4¢/lb to 66.3¢/lb and decreased for 316 turnings by 0.5¢/lb to 83.5¢/lb delivered processor yard.
LME nickel prices dropped by $194/mt from Monday with the official three-month LME Nickel contract settling at $15,951/mt on Tuesday. The official cash contract closed Tuesday at $15,907/mt, down by $208/mt from Monday.
LME nickel prices have seen the highest drop in the beginning of March this year since 2016. This is mainly because of production cuts at Norilsk Nickel and Tsingshan group deal with two Chinese battery makers.
This constant drop in LME nickel prices has cautioned the processors who are now quoting atleast 6-7¢/lb lower than what it was a couple of weeks back. Participants are seeing continued demand from the domestic mills which is keeping the market enthusiastic in an otherwise volatile market.