US stainless steel processor buying prices rose on Tuesday following increased LME nickel prices and strong mill demand.
The daily Davis Index for 304 solids grew by 2.2¢/lb to 86.3¢/lb delivered processor yard and increased for 316 solids by 1.2¢/lb to $1.13/lb delivered for single truckloads.
Scrap 304 turnings rose by 1.4¢/lb to 81¢/lb delivered and increased by 2.2¢/lb for 316 turnings to 1.027¢/lb, delivered processor yard.
LME nickel prices were up by $182/mt from Monday with the official three-month LME Nickel contract settling at $18,550/mt on Tuesday. The official cash contract closed at $18,541/mt today, up by $171/mt from yesterday.
Stainless steel processor buying prices have been trending upward since last month and are likely to continue increasing this month as well with robust domestic mill demand and climbing LME nickel prices. In some areas, participants have heard 304 solids prices near 88¢/lb for single truckloads.