LME nickel price rise fails to bolster US stainless scrap market

Dealers and processors in the United States are finding it increasingly difficult to accept lower stainless steel scrap prices while the London Metal Exchange cash nickel contract continues to hover above the $8-per-lb level.

“With LME nickel over $8 per lb, you would think 304 stainless prices would be at least in the low 60-[cent-per-lb range],” one domestic dealer source said. “We are not ignoring the current market but we are also not accepting it,” a US processor said. Most dealers and processors agreed that a great deal of uncertainty has remained in the market and did not expect this to change in the immediate future.   “It’s looking ugly out there for the fourth quarter. No good way to put it,” a second dealer source said. Fastmarkets’ assessment of the 300-series grades in Pittsburgh showed the stainless steel scrap 316 solids, clips, broker buying price, delivered to processor, at 78-80 cents per lb ($1,747-1,792 per gross ton) on Tuesday September 10, down from 76-81 cents per lb on September 3. The assessment of the broker buying price...


James Lawrence

September 11, 2019

22:02 GMT