Consumer buying prices for 300-series stainless scrap have
plunged to their lowest level since June 2009, prompted by
falling nickel markets and lackluster demand, although
400-series scrap prices have risen.
Buying prices for 316
solids dropped to $1,950 to $2,050 per gross ton from $2,200 to
$2,250 previously. Prices for 304 solids dropped to $1,425 to
$1,475 per ton from $1,550 to $1,600 previously, the lowest
level since June 2009 when prices were at $1,300 to $1,325 per
ton. The price range for 304 turnings also fell to $1,275 to
$1,325 per ton from $1,400 to $1,450 previously.
The London Metal
Exchanges cash nickel contract ended the official session
at $13,655 per tonne ($6.19 per pound) July 11, down 5.8
percent from $14,495 per tonne ($6.57 per pound) June 11.
Prices for 300-series
scrap are diverging considerably with consumer demand flagging
and nickel prices plummeting over the summer, market
participants told AMM.
no across-the-board price. ... Consumers are trying to buy as
cheap as they can, and its a competitive market in
selling," one processor said.
"Because things are
very fluid and highly negotiable, there are large spreads in
the marketplace. In some ways, a $50 spread is not enough to
show how widely divergent prices are. Theres a large
spread against a backdrop of relatively poor demand and
uncertainty, a second processor said.
Meanwhile, 430 solids
moved up to $590 to $610 per ton from $560 to $580 previously,
while 409 solids rose to $510 to $535 per ton from $475 to $500
"The falling chrome
and nickel market is hitting the commodity-grade stuff, but
with the 400-series (product) were doing well and
cant get enough of it," one consumer said.
told AMM earlier this week that 400-series scrap,
which contains no nickel, has been buoyed by recent gains in
prices for iron units (
amm.com, July 9).