US stainless steel processor buying prices increased across most grades on Tuesday despite falling LME nickel prices.
The weekly Davis Index for 201 solids increased by 0.9¢/lb to 31.5¢/lb delivered processor yard on Tuesday and rose for 301 solids by 1.3¢/lb to 43¢/lb for single truckloads.
The index for scrap 309 solids jumped by 2¢/lb to 73.5¢/lb delivered and climbed for 310 solids by 3.4¢/lb to $1.149/lb delivered. The weekly Davis Index for 330 solids increased by 4¢/lb to $1.815/lb delivered processor yard.
The index for 409/410 solids declined by $20.5/gt to $285.2/gt delivered processor yard and declined by $24.5/gt to $355.5/gt for 430 solids delivered.
The gradual increase in stainless steel processor buying prices over the past week reflects the recent robustness in the LME nickel market rather than mill demand, according to market participants. The latter has been slow over the past few weeks and processors expect this trend to last through the last two months of the year.
The daily Davis Index for scrap 304 solids rose by 1.3¢/lb at 53.7¢/lb delivered processor yard and was up by 1.2¢/lb for 316 solids to 76¢/lb for single truckloads.
The index for scrap 304 turnings rose by 0.7¢/lb to 48.8¢/lb delivered and climbed for 316 turnings by 0.9¢/lb to 69¢/lb for single truckloads.
LME Nickel prices decreased by $164/mt from Monday with the official three-month LME Nickel contract settling at $15,753/mt on Tuesday. The official cash contract closed Tuesday at $15,700/mt down by $162/mt from Monday.