US stainless steel processor buying prices rose across all grades on Thursday following increasing LME Nickel prices.
The daily Davis Index for 304 solids rose by 0.3¢/lb to 88.5¢/lb delivered processor yard and increased for 316 solids by 1¢/lb to $1.187/lb for single truckloads.
Scrap 304 turnings grew by 0.7¢/lb to 83¢/lb delivered and increased for 316 turnings by 1¢/lb to 1.07¢/lb, delivered processor yard.
LME Nickel prices increased by $230/mt from Wednesday with the official three-month LME Nickel contract settling at $19,650/mt on Thursday. The official cash contract closed Thursday at $19,540/mt, up by $655/mt from Wednesday.
Stainless steel processor buying prices have risen in tandem with LME nickel, which has been on an upward trajectory since the beginning of this week. That said, processors are being cautious with their purchases, given a sluggish demand outlook for September, to avoid excess inventory if prices do fall eventually.