US stainless steel processor buying prices decreased on Thursday amid falling LME Nickel prices and weakening demand.
The daily Davis Index for scrap 304 solids dropped by 1.5¢/lb to 74.3¢/lb delivered processor yard and fell for 316 solids by the same amount to 95.5¢/lb for single truckloads.
Scrap 304 turnings declined by 1.4¢/lb to 71.7¢/lb delivered and inched down for 316 turnings by 0.2¢/lb to 87.5¢/lb delivered processor yard.
LME Nickel prices moved down by $160/mt from Wednesday with the official three-month LME Nickel contract settling at $16,097/mt on Thursday. The official cash contract closed Thursday at $16,049/mt, down by $156/mt from Wednesday.
Demand for stainless steel scrap is softening after a strong first quarter and processors who have gauged this trend are buying cautiously to prevent excess inventory build-up. Moreover, a rangebound LME nickel market has slowed down the stainless scrap market this month.