US stainless steel processor buying prices inched up on Monday amid a strengthening nickel market and on the expectations of better ferrous trading cues for September. 

 

The three-month LME nickel contract jumped by almost $563/mt over the past week, closing at $15,442/mt, on Friday. The LME was closed on Monday due to a scheduled UK Banking holiday.

 

The daily Davis Index for scrap 304 solids and 316 solids inched up by 0.1¢/lb to 56¢/lb delivered processor yard, and 77¢/lb for single truckloads delivered US processor, respectively.

 

The index for scrap 304 turnings and 316 turnings was also better by 0.1¢/lb at 51¢/lb delivered and 68¢/lb delivered, respectively.

 

Overall, the stainless-steel processors market was relatively quiet ahead of ferrous trade despite the small increases in prices. Market participants are optimistic about the near-term market with decent demand from the stainless mills.  However, the outlook and sentiment become foggy, moving into and beyond October as businesses shift into a wait and see mindset due to the US elections.

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