US stainless steel processor buying prices increased except for 304 solids on Thursday after LME Nickel prices climbed again.
The daily Davis Index for 304 solids inched down by 0.3¢/lb to 89.7¢/lb delivered processor yard and rose for 316 solids by 0.5¢/lb to $1.219/lb for single truckloads.
Scrap 304 turnings was up by 0.1¢/lb to 85.8¢/lb delivered and grew for 316 turnings by $0.3/lb to $1.124/lb, delivered processor yard.
LME nickel prices increased from Wednesday by $195/mt with the official three-month LME Nickel contract settling at $19,445/mt on Thursday. The official cash contract closed Thursday at $19,365/mt, down by $176/mt from Wednesday.
Stainless steel processor buying prices have been volatile with prices fluctuating on an uncertain demand outlook, LME Nickel price movements, and the potential in the export market.
Prices of the 304 grade, in particular, have been fluctuating over the past week amid mixed supply-demand trends. Processors who have enough inventory of this grade are trying to buy at low prices while those lacking inventories are willing to pay a premium. Moreover, the demand outlook for September has turned positive, pushing prices higher.