US stainless steel processor buying prices moved up by 1-2¢/lb on Tuesday amid the rising LME nickel market.
The daily Davis Index for scrap 304 solids climbed by 1.8¢/lb to 57.8¢/lb delivered processor yard and rose for 316 solids to 77.2¢/lb from 77¢/lb for single truckloads.
The index for scrap 304 turnings increased by 2¢/lb to 53¢/lb and moved up for 316 turnings by 1.5¢/lb to 69.5¢/lb delivered.
LME nickel prices increased by $255/mt from Friday with the official three-month LME Nickel contract settling at $15,697/mt on Tuesday. The official cash contract closed Tuesday at $15,660/mt, up by $246/mt from Friday.
Stainless steel prices have been rising over the past few weeks as demand from mill strengthens and LME Nickel prices increase. Some processors believe that the demand could be an artificial one as mills could be buying material now to stock up in anticipation of the market slowing down during and after the US elections.