US stainless steel processor buying prices increased across most grades on Wednesday amid rising LME nickel prices.
The weekly Davis Index for 201 solids rose to 32¢/lb from 31.8¢/lb delivered processor yard on Wednesday but inched down for 301 solids to 43.5¢/lb from 43.6¢/lb for single truckloads.
The index for scrap 309 solids rose by 1.7¢/lb to 77¢/lb delivered and surged for 310 solids by 2.4¢/lb to $1.185/lb delivered. The Davis Index for 330 solids ticked up by almost a penny to $1.91/lb delivered processor yard.
The index for 409/410 solids increased to $286.5/gt from $286.1/gt delivered processor yard and dropped to $370.9/gt delivered from $371.6/gt delivered for 430 solids.
Rising demand from domestic mills and the increase in LME Nickel this past week have increased stainless steel processor buying prices. That said, market participants expect demand to weaken towards the end of the year on historical cues as well as the upcoming US elections. For now, processors are trying to gauge market movements and how they would affect them over the next few weeks.
The daily Davis Index for scrap 304 solids rose to 54.4¢/lb from 54¢/lb delivered processor yard and surged for 316 solids by 2.5¢/lb to 75.6¢/lb for single truckloads.
The index for scrap 304 turnings inched up to 48.9¢/lb from 48.5¢/lb but fell for 316 turnings to 66.6¢/lb from 67.5¢/lb.
LME nickel prices rose by $173/mt from Tuesday with the official three-month LME Nickel contract settling at $15,077/mt on Wednesday. The official cash contract closed Wednesday at $15,034/mt.