US stainless steel processor buying prices dropped by 1-3¢/lb in tandem with decreasing LME nickel prices on Monday.

 

The daily Davis Index for scrap 304 solids fell by 1.7¢/lb to 71.8¢/lb delivered processor yard and declined for 316 solids by 2.8¢/lb to 92.7¢/lb for single truckloads.

 

The index for scrap 304 turnings moved down by 3.8¢/lb to 66.7¢/lb delivered and decreased for 316 turnings by 3.7¢/lb to 84¢/lb delivered processor yard. 

 

LME nickel prices dropped by $234/mt from Friday with the official three-month LME Nickel contract settling at $16,145/mt on Monday. The official cash contract closed Monday at $16,115/mt, down by $234/mt from Friday.

 

The volatile LME nickel and the ensuing stainless steel scrap price drops have made processors cautious despite the strong demand for the material from domestic mills. Participants, as a result, are not quoting higher than 72¢/lb for 304 solids and 94¢/lb for 316 solids.

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