US stainless steel processor buying prices rose across most grades on Wednesday despite concerns over a potential downtrend next month.

 

The weekly Davis Index for 201 solids increased to 27.3¢/lb from 27¢/lb delivered processor yard on Wednesday and jumped for 301 solids by 4¢/lb to 38.3¢/lb for single truckloads. 

 

The index for scrap 309 solids increased by 4¢/lb to 71.2¢/lb delivered and moved up for 310 solids to $1.085/lb from $1.080/lb delivered. The Davis Index for 330 solids rose by 4.8¢/lb to $1.718/lb delivered processor yard. 

 

The index for 409/410 solids, however, declined by $5.7/mt to $256.7/gt delivered processor yard but remained unchanged for 430 solids at 378.3/gt delivered. 

 

Some processors are skeptical about any further rise in prices pointing to historical August ferrous prices, which have generally remained lower compared to other months. This year too, processors expect ferrous prices to trend down in early August trade, which in turn, could put downward pressure on stainless steel prices during the month. Some processors are also operating with reduced margins as domestic mills refuse to pay higher buying prices and expect the trend to continue into next month. 

 

The daily Davis Index for scrap 304 solids fell slightly to 51.3¢/lb from 51.7¢/lb delivered processor yard and increased for 316 solids to 70¢/lb from 69.9¢/lb for single truckloads. 

 

The index for scrap 304 turnings decreased to 46.5¢/lb from 46.9¢/lb and held for 316 turnings at 60.3¢/lb.

 

LME nickel prices increased by $284/mt from Tuesday with the official three-month LME Nickel contract settling at $13,809/mt on Wednesday. The official cash contract closed Wednesday at $13,762/mt, up by $292/mt from Tuesday.

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