US stainless steel processor buying prices declined on Friday amid volatility on LME nickel.


The daily Davis Index for 304 scrap solids dropped from 51¢/lb to 50.8¢/lb delivered processor yard and 316 solids also dropped by same amount from 69.5¢/lb to 69.3¢/lb for single truckloads. 


Scrap 304 turnings also dropped from 45.5¢/lb to 44.5¢/lb on Friday, while 316 turnings remained at 59.5¢/lb. 


After dropping significantly on Thursday, LME nickel prices surged by $720/mt on Friday with the official three-month LME Nickel contract closing at $12,620/mt. The official cash LME nickel contract closed on Friday at $12,565/mt, up by $710/mt from Thursday.


The considerable fluctuations on LME nickel have seen US processor buying prices dropping over the past few days with market participants expecting a further drop in stainless steel buying prices over the next few weeks as uncertainty looms over the short- and medium-term impact of the COVID-19 virus on demand and supply.


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