US stainless steel processor buying prices declined by 1-2¢ for stainless solids grades on Monday after a drop in LME nickel prices.
The daily Davis Index for 304 scrap solids dropped by 2.3¢ to 48.5¢/lb delivered processor yard and 316 solids decreased from 69.3¢/lb on Friday to 68.5¢/lb for single truckloads on Monday.
Scrap 304 turnings increased to 45¢/lb on Monday from 44.5¢/lb on March 13, while 316 turnings rose by 2¢ to 61.5¢/lb.
LME nickel prices fell by $295/mt from Friday’s close with the official three-month LME Nickel contract closing at $12,025/mt on Monday. The official cash LME nickel contract closed on Monday at $11,980/mt, down by $291/mt from Friday.
Market participants were expecting the drop in stainless scrap prices because of the drop in LME nickel prices and the effect of the COVID-19 virus on supply and demand in the market.