US stainless steel processor buying prices climbed for all grades despite falling LME Nickel prices on Tuesday due to lack of supply of the material.
The daily Davis Index for scrap 304 solids increased by 3.3¢/lb to 59¢/lb delivered processor yard and rose by 5.3¢/lb for 316 solids to 80.3¢/lb for single truckloads.
The index for scrap 304 turnings was up by 0.7¢/lb to 52¢/lb and inched up by the same amount for 316 turnings to 69¢/lb delivered processor yard.
LME Nickel prices declined by $333/mt from Monday with the official three-month LME Nickel contract settling at $15,750/mt on Tuesday. The official cash contract closed Tuesday at $15,703/mt, down by $327/mt from Monday.
Stainless steel buying prices have been on the rise as the material’s supply tightens, though demand has not increased. According to some market participants, scrap supply is slow because of the fear of a second round of lockdowns to contain the rising COVID-19 infections as the cold weather sets in.