US stainless steel processor buying prices were rangebound on Tuesday following robust demand and increasing LME nickel prices.
The daily Davis Index for 304 solids was flat at 78¢/lb delivered processor yard and inched up for 316 solids by 0.1¢/lb to $1.01/lb for single truckloads.
Scrap 304 turnings was unchanged at 74¢/lb delivered and 316 turnings grew by 0.4¢/lb to 92.1¢/lb delivered processor yard.
LME nickel prices were up by $187/mt from Monday with the official three-month contract settling at $17,851/mt on Tuesday. The official cash contract closed at $17,828/mt today, up by $203/mt from yesterday.
Stainless steel scrap demand has been robust since the beginning of the month with nickel discount looking to be around 70pc for June. The market seems to be moving at a fast pace with mills trying to buy as much material to fulfill demand leading to slightly lower inventory levels.