US stainless steel processor buying prices increased across most grades on Wednesday.
The weekly Davis Index for 201 solids rose by 1.5¢/lb to 33.5¢/lb delivered processor yard on Wednesday and moved up by 2¢/lb for 301 solids to 45.5¢/lb for single truckloads.
The index for scrap 309 solids surged by 7¢/lb to 84¢/lb delivered and increased by 9.5¢/lb to $1.28/lb delivered for 310 solids. The Davis Index for 330 solids ticked up $1.6/lb to $2.065/lb delivered processor yard.
The index for 409/410 solids increased by $9.1/gt to $295.6/gt delivered processor yard and climbed by $4.6/gt to $375.5/gt delivered for 430 solids.
The rising LME nickel prices and stronger demand from mills has pushed stainless steel processor buying prices higher over the last couple of weeks. Market participants expect the ferrous market to exceed projected settled prices in September, which might, in turn, lead to a further increase in stainless steel buying prices. However, the upcoming elections could create uncertainty with processors expecting buying rates to drop moving into the last quarter.
The daily Davis Index for scrap 304 solids fell to 57.5¢/lb from 57.8¢/lb delivered processor yard and declined for 316 solids to 77¢/lb from 77.2¢/lb for single truckloads.
The index for scrap 304 and 316 turnings remained at 53¢/lb and 69.5¢/lb for single truckloads.
LME nickel prices declined by $26/mt from Tuesday with the official three-month LME Nickel contract settling at $15,671/mt on Wednesday. The official cash contract closed Wednesday at $15,658/mt down by $2/mt from Tuesday.