Continued weakness for the U.S stainless scrap market was expected heading into 2019 and only a few days into the New Year stainless scrap prices remain fragile. Market participants are looking ahead for indicators signaling better days to come, however minus some break in tariffs or consumers prices the on-going trend is likely to extend through the first quarter.
The London Metal Exchange (LME) cash nickel contract traded down 2% on January 2 from a week earlier, and down more than 7% from a month ago. Austenitic (300 series) and Ferritic (400 series) stainless scrap prices, which follow the LME, were mixed. Type 316 solids lost 3 cents on the low end from a week ago, while Type 304 solids tightened its range by a penny on both ends, and Type 304 turnings shed 2 cents overall. Type 430 and 409 solids were up a penny on the high end for the week, as Type 430 and 409 turnings each gained a penny.
We will continue to keep you updated on market conditions through our website news section, so check back often. Metro Alloys has successfully served its clients for more than 30 years in all market conditions and we encourage you to contact your sales representative, Marvin Fish, Gary Kamp or Abby Frank with any questions.