Stainless Steel Prices Due for a Fall

Implications: The article was right on target. Expect further cuts. India may become more active.

Analysis: The article was right on target. Scrap metal purchases from the major stainless producers were reduced prior to the Memorial Day weekend. As such, the large stainless processors and brokers have reduced their buying prices by an average of 10%.

Expectations are for further cuts should the producers extend their reluctance to purchase additional scrap.

The one thing that could curtail the price drop would be the emergence of additional buyers from other countries. India comes to mind. Indian buyers would be very happy to scoop up additional supply at what they consider to be a "bargain".