US stainless steel processor buying prices increased by more than 1¢/lb across all grades on Monday.
The daily Davis Index for scrap 304 solids rose by 1.8¢/lb to 4.3¢/lb delivered processor yard and ticked up for 316 solids by a penny to 62.3¢/lb for single truckloads.
The index for scrap 304 turnings increased by 1.2¢/lb to 40.7¢/lb and moved up for 316 turnings by 1.4¢/lb to 53.7¢/lb.
LME nickel prices surged by $293/mt from Friday with the official three-month LME Nickel contract settling at $12,485/mt on Monday. The official cash contract closed Monday at $12,418/mt, up by $298/mt from Friday.
Stainless steel processor buying prices have been increasing steadily over the past two weeks amid unpredictable market conditions, low demand from domestic mills, and increasing LME nickel prices. However, processors are unsure about how demand will move despite automotive manufacturing facilities looking to ramp up their production in June after more than two months of remaining shut.