US stainless steel processor buying prices increased this week following tight supply and strong mill demand.
The daily Davis Index for 304 solids rose by 0.8¢/lb to 88.4¢/lb delivered processor yard and was up for 316 solids by 0.9¢/lb to $1.149/lb for single truckloads.
Scrap 304 turnings grew by 0.5¢/lb to 83.2¢/lb and increased for 316 turnings by 0.8¢/lb to 1.051¢/lb, delivered processor yard.
LME nickel prices were down by $80/mt from Friday with the official three-month LME Nickel contract settling at $18,675/mt on Monday. The official cash contract closed at $18,566/mt today, down by $107/mt from last week.
Supply chain tightness and increased demand from the domestic mills are pushing stainless steel processor buying prices higher. Recovering industries continue to be weighed down with issues like trucking problems and shortage of industrial gases, both playing havoc with material movements adding to supply woes in the pandemic. Participants do not expect the market to cool down for summer and believe this momentum will continue into the quarter.