US stainless steel processor buying prices increased on Tuesday in tandem with increasing LME nickel prices.
The daily Davis Index for scrap 304 solids inched up by 0.6¢/lb to 74.8¢/lb delivered processor yard and rose for 316 solids by 0.8¢/lb to 95.8¢/lb for single truckloads.
The index for scrap 304 turnings moved up by 0.7¢/lb to 71.5¢/lb delivered and increased for 316 turnings by 0.6¢/lb to 85.8¢/lb delivered processor yard.
LME nickel prices rose by $111/mt from Monday with the official three-month LME Nickel contract settling at $16,584/mt on Tuesday. The official cash contract closed Tuesday at $16,526/mt, up by$101/mt from Monday.
The volatility in the LME Nickel market has impacted stainless steel processor buying prices as well this month. Weakening mill demand and a soft ferrous export market have also tempered the demand for stainless steel this week. These trends have created uncertainty in the market with processors trying to gauge the impact of this month’s fluctuations on stainless scrap demand in April.