US stainless steel processor buying prices increased on Friday in tandem with rising LME nickel prices.
The daily Davis Index for scrap 304 solids rose by 0.1¢/lb to 74¢/lb delivered processor yard and inched up for 316 solids by the same amount to 96¢/lb for single truckloads.
The index for scrap 304 turnings rose by 0.4¢/lb to 71.8¢/lb delivered and increased for 316 turnings by 0.1¢/lb to 87¢/lb delivered processor yard.
LME nickel prices rose by $300/mt from Thursday with the official three-month LME Nickel contract settling at $16,312/mt on Friday. The official cash contract closed Friday at $16,255/mt, up by $271/mt from Thursday.
Processors are still trying to gauge the market given the uncertainties due to the volatility in LME nickel prices and demand declining gradually. Market participants remain cautious with their purchases in a bid to avoid overextending themselves should there be a significant movement in stainless steel scrap prices.