US stainless steel processor buying price rose by 0.2-1¢/lb across all grades amid rising LME nickel prices on Tuesday.
The daily Davis Index for scrap 304 solids moved up by 0.5¢/lb to 54.5¢/lb delivered processor yard and rose by a penny for 316 solids to 76¢/lb for single truckloads.
The index for scrap 304 turnings increased by 0.2¢/lb to 50.7¢/lb and jumped for 316 turnings by the same amount to 50.7¢/lb delivered processor yard.
The prices for LME nickel moved up by $278/mt from Monday with the official three-month LME Nickel contract settling at $14,683/mt on Tuesday. The official cash contract closed Tuesday at $14,643/mt, up by $283/mt from Monday.
Stainless steel buying prices are rising this week after two weeks of continued declines. Processors believe that despite lower mill demand some regions of the country are facing tight supply. This trend along with the increasing LME Nickel prices are being viewed as the factors that have led to stainless steel scrap prices rising this week.