US stainless steel processor buying prices trended sideways on Friday following a decline in LME nickel prices and strong mill demand.
The daily Davis Index for 304 solids rose by 0.2¢/lb to 75¢/lb delivered processor yard and inched up for 316 solids by 0.4¢/lb to 97.3¢/lb for single truckloads.
Scrap 304 turnings inched up by 0.4¢/lb to 70.3¢/lb delivered and climbed for 316 turnings by 0.5¢/lb to 88¢/lb delivered processor yard.
LME nickel prices fell by $269/mt from Thursday with the official three-month LME Nickel contract settling at $17,083/mt on Friday. The official cash contract closed Friday at $17,047/mt, down by $279/mt from Thursday.
A significant decline in LME Nickel prices this week is putting downward pressure on prices. Still, demand from mills remains strong because of which, stainless steel processor prices have not declined. That said, processors believe that the strong demand trend is not expected to last as mills could withdraw from the market after making their purchases for the month.