US stainless steel processor buying prices grew for most grades on Wednesday following increased demand and rising LME nickel prices.
The weekly Davis Index for 201 solids inched up by 0.4¢/lb to 51¢/lb delivered processor yard and rose for 301 solids by 4.2¢/lb to 65.3¢/lb for single truckloads.
Scrap 309 solids increased by 4¢/lb to $1.023/lb delivered and moved up for 310 solids by 9¢/lb to $1.607/lb delivered, while 330 solids increased by 19¢/lb to $2.623/lb delivered processor yard.
For 409/410 solids, the index declined by $13.2/gt to $560.3/gt delivered processor yard and fell by $23.7/gt to $635/gt for 430 solids delivered.
An increase in LME Nickel prices over the past week along with increasing demand for stainless steel processor scrap has put upward pressure on stainless scrap prices this week. However, processors expect demand to soften towards the end of June, which could lead to a decline in stainless steel scrap prices.
The daily Davis Index for scrap 304 solids rose by 2.3¢/lb to 77¢/lb delivered processor yard and increased for 316 solids by 1¢/lb to 99.7¢/lb for single truckloads.
Scrap 304 turnings grew by 3¢/lb to 72¢/lb delivered and increased for 316 turnings by the 0.3¢/lb to 91¢/lb for single truckloads.
LME nickel prices declined by $14/mt from Tuesday with the official three-month LME Nickel contract settling at $18,173/mt on Wednesday. The official cash contract closed Wednesday at $18,133/mt, down by $14/mt from Tuesday, but up by $965/mt from 17,168/mt on May 26.