US stainless steel processor buying prices fell on Tuesday following slow demand and dropping LME nickel prices.
The daily Davis Index for scrap 304 solids dropped by 2¢/lb to 76.3¢/lb delivered processor yard and inched down for 316 solids by 0.7¢/lb to 98¢/lb for single truckloads.
Scrap 304 turnings was down by 0.2¢/lb to 72.8¢/lb delivered and fell for 316 turnings by 0.1¢/lb to 89.2¢/lb delivered processor yard.
LME nickel prices declined by $124/mt from Monday, with the official three-month contract settling at $17,975/mt on Tuesday. The official cash contract closed at $17,943mt today, down by $127/mt from Monday.
Processors are seeing weak demand with no expectations of recovery this quarter. Buying sentiment is skeptical following excess inventory concerns. LME nickel prices were trending up early this month keeping processor buying prices high. However, if the exchange’s prices drop, stainless steel scrap prices are expected to decline as well.