The stainless steel scrap market in the United States has continued to deteriorate amid weakening nickel prices, with the official nickel cash contract on the London Metal Exchange declining by nearly 60 cents per lb over the month of September.
Scrap processors and dealers reported a severe lack of supply, with many industries either shut down or greatly reducing production.
The major stainless consumers have continued to see a lack of demand; however, the greatly reduced scrap availability has prevented prices from falling much further, Fastmarkets understands.
"I think the processors are fighting to cover what demand is out there. The flow of scrap is nowhere near its normal amount for this time of year," one dealer said.
"The drop in the LME cash nickel price has certainly impacted stainless steel scrap prices," a second dealer said.
Fastmarkets assessed the...