US stainless steel processor buying prices increased for 304 solids and turnings and for 316 turnings, on Tuesday.
The daily Davis Index for 304 scrap solids increased by 1.5¢/lb to 43.5¢/lb delivered processor yard and decreased for 316 solids by 1.1¢/lb to 62.5¢/lb for single truckloads.
The index for scrap 304 turnings rose by 1.3¢/lb to 37.8¢/lb, while the Davis Index for 316 turnings surged by 3.5¢/lb to 55.5¢/lb on Tuesday.
LME nickel prices increased by $280/mt from April 9 with the official three-month LME Nickel contract settling at $11,803/mt on Tuesday. The official cash contract closed Tuesday at $11,722/mt, up by $266/mt from April 9.
Some processors are pushing prices to higher levels as LME nickel continues to rise, according to market participants. However, they expect this strategy could be risky in the short term as consumption in May-June could decrease by at least 35pc or more due to the COVID-19 crisis.