US stainless steel processor buying prices increased for most grades on Wednesday despite a drop in LME nickel prices.
The daily Davis Index for 304 scrap solids increased to 43.7¢/lb from 43.5¢/lb delivered processor yard moved up for 316 solids to 62.8¢/lb from 62.5¢/lb for single truckloads.
The index for scrap 304 turnings surged to 37.9¢/lb from 37.8¢/lb and decreased for 316 turnings by 1.3¢/lb to 53.2¢/lb.
The weekly Davis Index for 201 solids increased by a penny on Wednesday to 26¢/lb and moved up by the same amount for 301 solids to 32.5¢/lb. The weekly index for scrap 309 solids surged by 2.5¢/lb to 62.5¢/lb and increased by 3¢/lb for 310 solids to 93c/lb. The weekly Davis Index for 330 solids increased by 5.5¢/lb to $1.465/lb but dropped for 409/410 solids by $11.2/gt to $212.8/gt. The weekly index for 430 solids surged by $44.8/gt to $268.8/gt on Wednesday.
LME nickel prices decreased by $8/mt from Tuesday with the official three-month LME Nickel contract settling at $11,795/mt on Wednesday. The official cash contract closed Wednesday at $11,712/mt, down by $11/mt from Tuesday.
Stainless steel processors prices have seen an uptick across all grades since April 8 due to an increase in LME nickel prices over the week, notwithstanding Wednesday’s drop. However, participants are uncertain about demand remaining at previous levels given the stay-at-home orders imposed by various states across the US to contain the spread of COVID-19.