US stainless steel processor buying prices increased slightly across all grades on Tuesday amid increasing LME nickel prices.


The daily Davis Index for scrap 304 solids rose to 50.1¢/lb from 49.8¢/lb delivered processor yard and jumped for 316 solids to 69.4¢/lb from 69.3¢/lb for single truckloads.


The index for scrap 304 turnings ticked up to 45.9¢/lb from 45.8¢/lb and increased for 316 turnings to 61.5¢/lb from 61.4¢/lb delivered. 


LME nickel prices increased by $43/mt from Monday with the official three-month LME Nickel contract settling at $13,567/mt on Tuesday. The official cash contract closed Tuesday at $13,518/mt, up by $36/mt from Monday.


Stainless steel demand has remained steady but has shown signs of growing slowly over the past few weeks. Some processors are worried about the medium-term impact of the upcoming election in the US in November on prices for stainless steel, while others prefer to adopt a wait-and-watch approach, keeping close tabs on how the ferrous scrap market pans out during the rest of this month to determine the impact on processor prices.

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