US stainless steel processor buying prices declined by 4-6¢ on Thursday after LME nickel decreased over the concerns surrounding COVID-19’s economic impact.
The daily Davis Index for 304 scrap solids dropped by 4.7¢ to 42.5¢/lb delivered processor yard and 316 solids dropped by 5.6¢ to 62.6¢/lb for single truckloads.
The index for Scrap 304 turnings also dropped by 3.8¢ to 40.4¢/lb on Thursday, while 316 turnings declined by 2.8¢ to 58.3¢/lb.
LME nickel prices fell by $170/mt from Wednesday with the official three-month LME Nickel contract closing at $11,340/mt on Thursday. The official cash LME nickel contract closed on Thursday at $11,235/mt, down by $185/mt from Wednesday.
Some processors who move most of their material through two Houston port terminals that were closed due to COVID-19, have also dropped prices as a measure of caution. This decrease, however, could be temporary until the market settles and the port opens.