US stainless steel processor buying prices rose across all grades on increasing LME nickel prices on Monday.
The daily Davis Index for scrap 304 solids increased by 0.7¢/lb to 74.1¢/lb delivered processor yard and climbed for 316 solids by 0.5¢/lb to 94.3¢/lb for single truckloads.
The index for scrap 304 turnings inched up by 0.1¢/lb to 66.8¢/lb delivered and rose for 316 turnings by 0.2¢/lb to 85¢/lb delivered processor yard.
LME nickel prices moved up by $107/mt from Friday with the official three-month LME Nickel contract settling at $18,102/mt on Monday. The official cash contract closed Monday at $18,067/mt, up by $113/mt from Friday.
Market participants remain positive about the upward pressure on stainless steel processor buying prices this month despite ferrous scrap prices settling for February at down $50-60/gt depending on grade and region. Strong demand from mills, apart from the rising LME Nickel prices, have kept stainless steel scrap prices relatively unaffected by the falls in the domestic ferrous markets. Processors believe this trend will continue at least until the end of this month.