US stainless steel processor buying prices rose on Tuesday amid robust demand and increasing LME nickel prices.
The daily Davis Index for 304 solids grew by 0.3¢/lb to 75.3¢/lb delivered processor yard and increased for 316 solids by 1.5¢/lb to 99¢/lb for single truckloads.
Scrap 304 turnings inched up by 0.5¢/lb to 70.5¢/lb delivered and climbed for 316 turnings by 1.7¢/lb to 90¢/lb delivered processor yard.
LME nickel prices increased by $342/mt from Monday with the official three-month LME Nickel contract settling at $17,166/mt on Tuesday. The official cash contract closed Tuesday at $17,125/mt, up by $345/mt from Monday.
Processor buying prices have trended north since the beginning of this week on steady demand from mills. The rise in LME Nickel prices has spurred stainless scrap prices higher today. Still, processors foresee demand softening this summer as some mills will reduce production at that time due to maintenance work.