US stainless steel processor buying prices dropped for stainless steel solids but remained unchanged for turnings grades amid declining LME Nickel prices.
The daily Davis Index for scrap 304 solids inched down by 0.5¢/lb to 67.5¢/lb delivered processor yard and fell by the same amount for 316 scrap to 87.5¢/lb for single truckloads.
The indexes for scrap 304 and 316 turnings were unchanged at 62.5¢/lb delivered and 80¢/lb delivered processor yard, respectively.
LME Nickel prices fell by $200/mt from Friday with the official three-month LME Nickel contract settling at $17,416/mt on Monday. The official cash contract closed Monday at $17,342/mt, down by $209/mt from Friday.
Cautious processors have lowered their stainless-steel processor buying prices as the year-end approaches and to safeguard against the falling LME nickel market. However, it is still uncertain whether the current decline in prices is a one-off fluctuation or could become a trend, especially since the demand from domestic mills remains adequate and supply tight—a trend that has seen stainless scrap prices rising for the past month.