US stainless steel processor buying prices fell on Tuesday following a drop in LME nickel prices.
The daily Davis Index for 304 solids was down by 0.7¢/lb to 79¢/lb delivered processor yard and declined for 316 solids by the same amount to $1.05/lb for single truckloads.
Scrap 304 turnings also dropped by 0.7¢/lb to 75¢/lb delivered and 316 turnings slipped by 0.6¢/lb to 94.7¢/lb, delivered processor yard.
LME nickel prices were down by $369/mt from Monday with the official three-month LME Nickel contract settling at $17,938/mt on Tuesday. The official cash contract closed at $17,909/mt today, down by $367/mt from yesterday.
The demand for stainless steel scrap from domestic mills remains robust. However, LME nickel prices have started trending down this week pushing processor buying prices lower. Still, processors believe that mill demand will stem the downward pressure on prices.