NEW YORK Stainless scrap
processor buying prices have declined as a lack of orders from
consumers has impacted industry demand, according to
Processors are currently paying
between $2,350 and $2,420 per gross ton for 316 solids and
clips, down from $2,370 to $2,420 previously, while 304 solids
and clips fell to $1,700 to $1,745 per ton from $1,745 to
Prices for 430 bundles and
solids dropped to $480 to $520 per ton from $500 to $540
previously, while 409 bundles and solids fell to $380 to $430
per ton from $400 to $450.
The price decline was largely
anticipated, scrap dealers and processors told AMM
last week (
amm.com, Jan. 23).
"Last week, things were
medium-sloppy and looking to correct down a little bit. And I
think it has played out that way," one processor said.
"The price of chrome may have
moved up, but the mills arent going to acknowledge that
now," a second processor added.
Trading activity was slower than
expected due to a lack of demand from stainless consumers and
was widely cited as motivating the price drop.
"The order books do not look
good for February," the second processor said.
"The mills arent buying as
much as we projected," one scrap dealer added.
"We see a lack of domestic
demand. Everyone got excited in January thinking that nickel
prices would be better and production would be up, and so far
none of that has come to fruition," a third processor said.
The first processor said that
macroeconomic factors were also causing hesitation from some
consumers, adding that a projected boost in the wider economy
should improve activity.
"With the recent uptick in the
S&P and the Dow, maybe there are better times ahead. We
just need an overall lift to the entire complex," he said.