US stainless steel processor buying prices declined on Monday amid subdued trading in a cautious market.
The daily Davis Index for scrap 304 solids fell by 2.2¢/lb to 71.3¢/lb delivered processor yard and dropped for 316 solids by 1.8¢/lb to 94¢/lb for single truckloads.
The index for scrap 304 turnings declined by 4¢/lb to 62.5¢/lb delivered and decreased for 316 turnings by 2¢/lb to 82.5¢/lb delivered processor yard.
LME nickel prices climbed by $29/mt from Friday with the official three-month LME Nickel contract settling at $16,231/mt on Thursday. The official cash contract closed Monday at $16,167/mt, up by $9/mt from Friday.
The ongoing volatility in LME Nickel prices has turned the stainless steel scrap market cautious with participants uncertain about the price direction in the near term. Some processors have reduced their buying in anticipation of lower prices if LME Nickel falls further, despite continued mill demand.