US stainless steel processor buying prices declined on Monday following mixed market sentiments and a drop in LME Nickel prices.
The daily Davis Index for 304 solids inched down by 0.8¢/lb to 90.2¢/lb delivered processor yard and decreased for 316 solids by 0.2¢/lb to $1.195/lb for single truckloads.
Scrap 304 turnings fell by 1.3¢/lb to 86¢/lb delivered and declined for 316 turnings by 0.7¢/lb to 1.105¢/lb, delivered processor yard.
LME nickel prices moved down by $620/mt from Friday with the official three-month LME Nickel contract settling at $18,590/mt on Monday. The official cash contract closed Monday at $18,748/mt, down by $785/mt from Friday.
Market participants continue to diverge on their views on the supply-demand trends in the stainless steel scrap market this month and beyond, leading to some price volatility. Processors who were saying that demand will soften last week are now more optimistic about mill purchases, which has led to prices inching up since Friday. Still, others remain bearish about the market in the belief that softer demand will lead to higher supply and put downward pressure on prices in September through the last quarter.