US stainless steel processor buying prices inched up on strong mill demand and an increase in LME nickel prices on Friday.
The daily Davis Index for 304 solids increased by 0.1¢/lb to 81.2¢/lb delivered processor yard and was up for 316 solids by 0.2¢/lb to $1.079/lb for single truckloads.
Scrap 304 turnings rose by 0.2¢/lb to 76.6¢/lb delivered and increased by the same amount for 316 turnings to 97.9¢/lb, delivered processor yard.
LME nickel prices climbed by $395/mt from Thursday with the official three-month LME Nickel contract settling at $18,563/mt on Friday. The official cash contract closed Friday at $18,611/mt, up by $419/mt from Thursday.
Robust demand from domestic mills and an increase in LME Nickel this week have pushed up the prices for stainless steel scrap. Processors expect scrap flows to tighten slightly as yard inventory falls following strong sales over the past two weeks. For now, though, scrap yards have enough inventory to fulfill mill demand.