US stainless steel processor buying prices increased by around 1-2¢/lb across most grades on Monday amid increasing LME nickel prices.
The daily Davis Index for scrap 304 solids rose by slightly more than half-a-penny to 54¢/lb delivered processor yard and it moved up for 316 solids by 1.1¢/lb to 73.5¢/lb for single truckloads.
The index for scrap 304 turnings climbed by 2.1¢/lb to 48.5¢/lb delivered and increased for 316 turnings by 2.8¢/lb to 67.2¢/lb delivered.
LME nickel prices increased by $296/mt from Friday with the official three-month LME Nickel contract settling at $14,906/mt on Monday. The official cash contract closed Monday at $14,862/mt, up by $300/mt from Friday.
Stainless steel buying prices reflected the rise in LME nickel on Monday as well as the increasing demand from mills. However, processors are skeptical whether this uptick will hold into fall since demand usually wanes by the last quarter of year and that trend could be more pronounced this year due to the effects of the COVID-19 pandemic on various businesses.