US stainless steel processor buying prices dipped slightly for 316 solids and 304 turnings on Tuesday despite a rise in LME nickel prices.
The daily Davis Index for scrap 304 solids remained at 53¢/lb delivered processor yard and inched down for 316 solids by half a penny to 72.4¢/lb for single truckloads.
The index for scrap 304 turnings dropped to 47.4¢/lb delivered from 47.7¢/lb delivered processor yard and was flat for 316 turnings at 65¢/lb delivered.
LME nickel prices increased by $50/mt from Monday with the official three-month LME Nickel contract settling at $14,652/mt on Tuesday. The official cash contract closed Tuesday at $14,602/mt, up by $54/mt from Monday.
Stainless steel processor buying prices have not surged despite strengthening demand from domestic mills. Some participants believe this is because scrapyards have curtailed their sales in some regions to avoid price increases and also to see where the market is headed since buying prices are expected to drop by the end of September.