US stainless steel processor buying prices increased by a couple of cents for most grades amidst increasing LME Nickel prices.
The daily Davis Index for scrap 304 solids inched up by 0.2¢/lb to 53.7¢/lb delivered processor yard on Monday and grew by 0.3¢/lb for 316 solids at 74.8¢/lb for single truckloads in a quiet market for the material.
The index for scrap 304 turnings rose slightly by 0.2¢/lb at 48.8¢/lb and was flat for 316 turnings at 68.1¢/lb delivered processor yard.
LME nickel price was up by $353/mt from Friday with the official three-month LME Nickel contract settling at $15,917/mt on Monday. The official cash contract closed Monday at $15,862/mt, up by $330/mt from Friday.
Weak demand from mills for stainless scrap had led to prices trending sideways to flat since the past week or so. Despite LME Nickel prices rising fairly on a daily and weekly basis, market participants believe that demand, and in turn prices, will remain cold for the materials until the end of the calendar year.