US stainless steel processor buying prices moved higher on Thursday amid the ferrous market’s strength and a more substantial LME Nickel market. The official three-month LME Nickel contracts jumped by $372/mt from Wednesday’s close.
The daily Davis Index for scrap 304 solids rose by 1.5¢/lb to 62.6¢/lb delivered processor yard, while 316 solids increased by 2.6¢/lb to 83.9¢/lb for single truckloads delivered US processor.
The index for scrap 304 turnings was better by 1.3¢/lb, climbing to 57.3¢/lb delivered, and inched up by 0.9¢/lb to 76.2¢/lb delivered for 316 turnings.
LME Nickel prices increased by $372/mt on Thursday to close at $16,891/mt from $16,519/mt at the close of trading on Dec 9.
The jump in ferrous scrap pricing, the strong LME market, and tight supply have helped push stainless steel processor pricing higher, with processors looking to build some inventory into what looks to be a solid Q1 for 2021.