The weekly Davis Index for most processor grades fell by 2-9¢/lb on Wednesday as demand for US stainless steel processor scrap weakened.
The daily Davis Index for 304 scrap solids increased by 2¢/lb to 38.5¢/lb delivered processor yard and 316 solids increased by 2.3¢/lb to 60.3¢/lb for single truckloads.
Scrap 304 turnings surged by 3¢/lb to 37¢/lb, while 316 turnings increased by 3.5¢/lb to 53.5¢/lb on Wednesday.
However, the weekly Davis Index for 201 solids dropped to 29¢/lb delivered processor yard from 29.2c/lb delivered and fell by 7.9c/lb for 301 solids to 31¢/lb delivered processor yard. The weekly index for scrap 309 solids decreased by 9.4c/lb to 59.2¢/lb delivered processor yard.
The weekly Davis Index for 409/410 solids dropped by $89.4/gt to $190.6/gt delivered processor yard while the index for 430 solids fell by $108.9/gt to $237.7/gt delivered.
LME nickel prices increased by $89/mt from Tuesday with the official three-month LME Nickel contract settling at $11,251/mt on Wednesday. The official cash contract closed Wednesday at $11,175/mt, up by $100/mt from Tuesday.
Processors have completed their buying for April. The ensuing weak demand and uncertainty over the buying market in May due to COVID-19 has resulted in the significant drop in processor buying prices across most grades this week, according to market participants. Some processors have also adopted a wait and watch approach to see if mill demand drops due to the current economic environment.