US stainless steel processor buying prices increased across all grades on Thursday due to the increase in LME Nickel prices.
The daily Davis Index for scrap 304 solids jumped by 1.3¢/lb to 71.8¢/lb delivered processor yard and 316 solids increased by 0.7¢/lb to 91.2¢/lb for single truckloads.
The index for scrap 304 turnings remained at 65¢/lb delivered but rose for 316 turnings by 1.5¢/lb to 83¢/lb delivered processor yard.
LME Nickel prices increased by $255/mt from Wednesday with the official three-month LME Nickel contract settling at $17,986/mt on Thursday. The official cash contract closed Thursday at $17,951/mt, up by $276/mt from Wednesday.
The LME Nickel prices have soared over the past three days after the Philippines government banned nickel mining on its Tumbagan Island, sparking supply disruption concerns for the material. News that Eramet’s nickel subsidiary, SLN, may go into liquidation if protests in New Caledonia continued, added to these worries and saw nickel prices surging across the world.
The global rise in nickel prices, as well as stable mill demand, has seen the US stainless-steel processor buying prices increasing by around 3¢/lb since the beginning of this week. Moreover, market participants expect the climb to continue as mill demand is likely to strengthen further this month.