US stainless steel processor buying prices increased across most grades on Wednesday amid increasing LME nickel prices and stronger demand from mills.
The weekly Davis Index for 201 solids rose by 1.2¢/lb to 31.8¢/lb delivered processor yard on Wednesday and jumped by 2.9¢/lb for 301 solids to 43.6¢/lb for single truckloads.
The index for scrap 309 solids increased by 1.8¢/lb to 75.3¢/lb delivered and ticked up for 310 solids to $1.161/lb from $1.16/lb delivered. The Davis Index for 330 solids surged by 8¢/lb to $1.901/lb delivered processor yard.
The index for 409/410 solids surged by $13.4/gt to $286.1/mt delivered processor yard and increased by $4.4/gt to $371.6/mt delivered for 430 solids.
Rising LME nickel prices and stronger demand from steel mills have spurred stainless steel processor buying prices higher this week. Some scrapyards are unwilling to sell their material just yet as they analyze which direction the market is headed. This trend could gradually reduce the material supply leading to a further increase in prices. On the other hand, processors are trying to push buying prices down to maintain some profit margins.
The daily Davis Index for scrap 304 solids rose by almost a penny to 53.9¢/lb delivered processor yard and increased for 316 solids to 73¢/lb from 72.4¢/lb for single truckloads.
Turnings were the only grades that decreased on Wednesday with the daily Davis Index for scrap 304 turnings declining to 46.9¢/lb from 47.4¢/lb and 316 turnings falling to 64.9¢/lb from 65¢/lb.
LME nickel prices increased by $106/mt from Tuesday with the official three-month LME Nickel contract settling at $14,758/mt on Wednesday. The official cash contract closed Wednesday at $14,705/mt, up by $103/mt from Tuesday.