US stainless steel processor buying prices inched down across most grades despite a slight increase in LME nickel prices on Tuesday.
The daily Davis Index for scrap 304 solids fell by 0.3¢/lb to 73.5¢/lb delivered processor yard and rose for 316 solids by 0.2¢/lb to 96¢/lb for single truckloads.
The index for scrap 304 turnings declined by 5¢/lb to 66¢/lb delivered and decreased for 316 turnings by 0.3¢/lb to 86.5¢/lb delivered processor yard.
LME nickel prices increased by $57/mt from Monday with the official three-month LME Nickel contract settling at $16,359/mt on Tuesday. The official cash contract closed Tuesday at $16,327/mt, up by $68/mt from Monday.
Stainless steel scrap demand has weakened as most processors have completed their buying activity through April, which has led to price declines for grades like 304 turnings. The market uncertainty, given LME nickel’s volatility, has also made participants more cautious with their purchases.