US stainless steel processor buying prices rose for a second day on Tuesday, with demand inching upward and a tight supply.
The daily Davis Index for 304 solids rose by 0.9¢/lb to 91.7¢/lb delivered processor yard and increased for 316 solids by 1.5¢/lb to $1.21/lb for single truckloads.
Scrap 304 turnings grew by 0.5¢/lb to 87.3¢/lb and increased for 316 turnings by the same amount to 1.107¢/lb, delivered processor yard.
LME nickel prices were down by $325/mt from Monday with the official three-month LME Nickel contract settling at $19,239/mt on Tuesday. The official cash contract closed at $19,470/mt today, down by $35/mt from yesterday.
Supply tightness and rising demand have pushed stainless steel processor buying prices upward, even though LME nickel prices declined this week. Participants expect the demand trend to continue, but there is uncertainty following mills reducing tonnage estimates for September.