US stainless steel processor buying prices diverged depending on grade after LME nickel prices fell for the second day in a row on Wednesday.
The weekly Davis Index for 201 solids increased by 2¢/lb to 46.5¢/lb delivered processor yard on Wednesday and rose for 301 solids by 1.5¢/lb to 62¢/lb for single truckloads.
The index for scrap 309 solids, however, was flat at $1/lb delivered and dropped for 310 solids by 0.5¢/lb to $1.535/lb delivered. The weekly Davis Index for 330 solids fell by 4¢/lb to $2.525/lb delivered processor yard.
The index for 409/410 solids declined by $1.6/gt to $425.5/gt delivered processor yard and was unchanged at $515.1/gt delivered for 430 solids.
LME Nickel prices have started moving down since Jan 26 after a continuous increase over the past two weeks. This rise along with strong demand from domestic mills has kept stainless-steel processor buying prices high. However, the fall in LME Nickel and an anticipated weakening of mill demand in February could put downward pressure on prices moving into next month, according to market participants.
The daily Davis Index for scrap 304 solids rose by a penny to 75.5¢/lb delivered processor yard and increased for 316 solids by 2.5¢/lb to 97¢/lb for single truckloads.
The index for scrap 304 turnings jumped by 2¢/lb to 70.5¢/lb delivered and rose for 316 turnings by 3¢/lb to 87.5¢/lb for single truckloads.
LME Nickel prices fell by $337/mt from Tuesday with the official three-month LME Nickel contract settling at $17,860/mt on Wednesday. The official cash contract closed Wednesday at $17,818/mt down by $324/mt from Tuesday.