US stainless steel processor buying prices increased across all grades on Thursday amid rising nickel prices on the LME.
The daily Davis Index for scrap 304 solids rose slightly to 53.5¢/lb delivered from 53.4¢/lb delivered processor yard and jumped for 316 solids to 72¢/lb delivered from 71.3¢/lb delivered processor yard for single truckloads.
The index for scrap 304 turnings ticked up to 47¢/lb delivered from 46.8¢/lb delivered and increased for 316 turnings to 62.7¢/lb delivered from 61.6¢/lb delivered.
LME nickel prices rose by $146/mt from Wednesday with the official three-month LME Nickel contract settling at $14,433/mt on Thursday. The official cash contract closed Thursday at $14,381/mt, up by $131/mt from Wednesday.
Stainless steel prices through the week have been moving up with increase in the nickel market and a rise in demand from domestic mills. However, some processors are seeing very thin margins on their sale as selling prices to the mills have remained almost at the same levels compared with buying prices that have increased.