US stainless steel processor buying prices trended down slightly for most grades on Monday despite rising demand and increasing LME Nickel prices.
The daily Davis Index for scrap 304 solids inched down by 0.3¢/lb to 60.5¢/lb delivered processor yard and dropped by the same amount for 316 solids to 81.5¢/lb for single truckloads.
The index for scrap 304 turnings also declined by 0.3¢/lb to 56¢/lb but rose by 0.5¢/lb for 316 turnings to 74.5¢/lb delivered processor yard.
LME Nickel prices moved up by $284/mt from Friday with the official three-month LME Nickel contract settling at $16,348/mt on Monday. The official cash contract closed Monday at $16,290/mt, up by $270/mt from Friday.
The stainless-steel processor buying market has experienced an unexpected, but welcome growth over the past month on steady demand from mills. The slight moderation in prices on Monday is therefore being watched closely by processors who expect further price increases in January, though they remain tentative about how the market will pan out closer to the holidays in December end.