US stainless steel processor buying prices climbed on Tuesday amid tightening supply and increasing LME Nickel prices.
The daily Davis Index for scrap 304 solids rose by 0.5¢/lb to 74.8¢/lb delivered processor yard and inched up by 0.2¢/lb for 316 solids to 97¢/lb for single truckloads.
The index for scrap 304 turnings grew by 0.6¢/lb to 67.3¢/lb delivered and was up for 316 turnings by 1¢/lb to 87.8¢/lb delivered processor yard.
LME nickel prices were up by $519/mt from Thursday last week with the official three-month LME Nickel contract settling at $16,567/mt on Tuesday. The official cash contract closed Tuesday at $16,520/mt, up by $519/mt from Thursday last week. The LME market was closed on Friday and Monday for Easter.
The monthly US ferrous trading began on Monday at sideways pricing for prime scrap and down $20/gt for secondary grades. Processors are trying to gauge the impact of these price movements on the stainless scrap market, keeping stainless steel prices rangebound. Still, a supply tightness has pushed prices higher today, with some participants expecting prices to rise further if this trend continues.