Stainless steel scrap prices have fallen, with plunging
terminal nickel markets and reportedly nonexistent demand
putting more downward pressure on buying prices.
buying prices for Type 304 solids dropped to a range of $1,200
to $1,255 per gross ton from $1,275 to $1,335 previously, 304
turnings fell to $1,075 to $1,120 per ton from $1,120 to $1,175
and 316 solids dropped to $1,850 to $1,925 per ton from $1,960
Prices are at their
lowest levels since June 2009, when 304 solids were in a range
of $1,150 to $1,175 per ton.
buying prices also have taken a hit, with 304 solids dropping
to a range of 41 to 44 cents per pound from 44 to 47 cents
The London Metal
Exchanges cash nickel contract closed the official
session June 25 at $13,865 per tonne ($6.29 per pound), down
1.1 percent from $14,025 per tonne ($6.36 per pound) a week
earlier and 9.1 percent lower than $15,255 per tonne ($6.92 per
pound) June 5.
"With the fall in
nickel, and the reduction again of percentages of nickel paid
by the mills, the price has fallen again. July looks to be as
weak as we have seen since early 2009. We are in for a long
summer," one processor said.
incentive for people to buy right now," a second processor
said. "At some point, people will wish they had jumped in
because prices are very low, but right now it feels like they
could go lower."
One dealer predicted
that broker/processor buying prices for 304 solids would soon
fall below 50 cents per pound ($1,120 per gross ton). "Business
really sucks," he said. "People wont even answer the
phone. Its going to be in the 40s real soon, probably by
next week. Theres just no demand."