US stainless steel processor buying prices increased across all grades in tandem with the rising LME market and strengthening demand for stainless scrap from mills on Monday.
The daily Davis Index for scrap 304 solids increased by 1.2¢/lb to 60¢/lb delivered processor yard and rose by 2¢/lb for 316 solids to 81¢/lb for single truckloads.
The index for scrap 304 turnings jumped by 1¢/lb to 55¢/lb and inched up by 0.5¢/lb for 316 turnings to 72¢/lb delivered processor yard.
LME Nickel prices increased by $165/mt from Friday with the official three-month LME Nickel contract settling at $16,065/mt on Monday. The official cash contract closed Monday at $16,017/mt, up by $147/mt from Friday.
Processors are pointing to many factors, including a sudden increase in mill demand, tight supply, and the promising outlook on the COVID-19 vaccine, as potential causes for the current uptrend in stainless steel prices. Either way, this increase in demand is keeping the spirits high in the stainless scrap market, which is otherwise slow during this time of the year.