US stainless steel processor buying prices dropped across most grades on Monday tracking Friday’s fall in the LME Nickel market.
The daily Davis Index for scrap 304 solids fell by 1.2¢/lb to 79.5¢/lb delivered processor yard and declined for 316 solids by 0.5¢/lb to $1.02/lb for single truckloads.
The index for scrap 304 turnings inched down by 0.5¢/lb to 73.5¢/lb delivered and was flat for 316 turnings at 92.5¢/lb delivered processor yard.
After a decline on Friday, LME nickel prices increased by $22/mt with the official three-month LME Nickel contract settling at $18,675/mt on Monday. The official cash contract closed Monday at $18,655/mt, up by $48/mt from Friday.
Mill demand remains strong with processors attributing the current price fluctuations in the stainless-steel scrap market to the volatility on LME Nickel. That said, participants are gauging the market trends to determine if the strength in mill demand, since the beginning of this year, will continue through March.