US stainless steel processor buying prices fell on Thursday despite increasing LME nickel prices.
The daily Davis Index for 304 solids dropped by 1.5¢/lb to 74¢/lb delivered and decreased for 316 solids by 1¢/lb to 98.3¢/lb delivered processor yard for single truckloads.
Scrap 304 turnings was down by 1.8¢/lb to 69¢/lb delivered and fell for 316 turnings by 1.3¢/lb to 89¢/lb delivered processor yard.
LME nickel prices were up by $212/mt from Wednesday with the official three-month contract settling at $17,410/mt on Thursday. The official cash contract closed at $17,364/mt today, up by $196/mt from Wednesday.
Although LME nickel prices have started moving up, processors are cautious due to demand uncertainties as they buy material. This unpredictability is likely to continue until summer, putting downward pressure on processor buying prices of stainless steel. Currently, participants have adopted a wait and watch approach to see how the market turns next month.