US stainless steel processor buying prices rose across most grades on increasing LME nickel prices on Friday.
The daily Davis Index for scrap 304 solids dropped by a penny to 73.4¢/lb delivered processor yard but increased for 316 solids by 0.6¢/lb to 93.8¢/lb for single truckloads.
The index for scrap 304 turnings rose by 0.5¢/lb to 66.7¢/lb and inched up for 316 turnings by 0.4¢/lb to 84.8¢/lb delivered processor yard.
LME nickel prices increased by $405/mt from Thursday with the official three-month LME Nickel contract settling at $17,995/mt on Friday. The official cash contract closed Friday at $17,954/mt, up by $419/mt from Thursday.
Stainless steel processor buying prices have remained high on demand strength from mills this week despite the volatility in the LME Nickel market. Processors do not foresee this trend changing this month unless the domestic ferrous scrap market, which began trading down $50-60/gt against January settled prices on Feb 4, falls further.