US stainless steel processor buying price increased across all grades amid rising LME nickel prices on Monday.
The daily Davis Index for scrap 304 solids rose by 0.9¢/lb to 54¢/lb delivered processor yard and moved up for 316 solids by 1.8¢/lb to 75¢/lb for single truckloads.
The index for scrap 304 turnings increased by 0.6¢/lb to 50.5¢/lb and jumped up for 316 turnings by 1.5¢/lb to 50.5¢/lb delivered processor yard.
LME nickel prices increased by $100/mt from Friday with the official three-month LME Nickel contract settling at $14,405/mt on Thursday. The official cash contract closed Monday at $14,360/mt, up by $89/mt from Friday.
Processor buying prices followed the trend set by LME Nickel on Monday, breaking a cycle of continued declines in the past two weeks. However, processors remain unsure about how long the upward movement would last. Most of the market participants believe this is a temporary reprieve and expect a drop in prices in the short term.