US stainless steel processor buying prices increased for 304 solids but were flat for 304 turnings and 316 solids and turnings on Thursday.
The daily Davis Index for 304 scrap solids rose by a penny to 53¢/lb delivered processor yard while 316 solids remained at 71¢/lb for single truckloads.
The index for scrap 304 turnings and 316 turnings also held at 47¢/lb and 62¢/lb, respectively.
High demand from domestic stainless-steel mills is driving prices, especially for 304 blends, upwards, according to market participants, as processors scramble to supply the material. On the other hand, a downturn in nickel pricing due to the coronavirus is impacting demand in China because of which some market participants expect stainless pricing to drop eventually.
LME nickel prices increased by $10/mt from Wednesday with the official three-month LME Nickel contract settling at $12,790/mt on Thursday. The official cash contract closed Tuesday at $12,685/mt, down by $15/mt from Wednesday.