US stainless steel processor buying prices declined by 1-3.5¢ on Thursday after LME nickel prices decreased significantly.
The daily Davis Index for 304 scrap solids dropped by 1.3¢ to 51¢/lb delivered processor yard and 316 solids dropped by 3.2¢ to 69.5¢/lb for single truckloads.
Scrap 304 turnings also dropped by 2.2¢ to 45.5¢/lb on Thursday, while 316 turnings declined by 3.5¢ to 59.5¢/lb.
LME nickel prices fell by $585/mt from Wednesday with the official three-month LME Nickel contract closing at $11,900/mt on Thursday. The official cash LME nickel contract closed on Thursday at $11,855/mt, down by $580/mt from Wednesday.
Market participants expect processor buying prices to drop further after the considerable drop in LME nickel on Thursday and have projected a further drop in prices in tandem with LME nickel.