US stainless steel processor buying prices ticked down across all grades on Monday as processors tried to assess the health of the US ferrous scrap market before setting stainless steel scrap buying prices.
The daily Davis Index for scrap 304 solids dropped to 49.9¢/lb from 50.4¢/lb delivered processor yard and declined for 316 solids to 69.9¢/lb from 70¢/lb for single truckloads.
The index for scrap 304 turnings fell slightly to 45¢/lb from 45.8¢/lb and decreased for 316 turnings to 60.3¢/lb from 60.5¢/lb delivered.
LME nickel prices increased by $308/mt from Friday with the official three-month LME nickel contract settling at $13,773/mt on Monday. The official cash contract closed Monday at $13,718/mt, up by $288/mt from Friday.
Stainless steel processor buying prices have moved within a narrow range this month on declining demand for domestic mills. Processors, however, expect stainless steel prices to remain flat or increase slightly in August on the back of an uptick in ferrous scrap prices that are expected to grow stronger according to some market participants.