US stainless steel processor buying prices inched up across all grades on Tuesday amid rising LME nickel prices.
The daily Davis Index for scrap 304 solids moved up 0.5¢/lb to 53.5¢/lb delivered processor yard and increased for 316 by 0.6¢/lb to 75.1¢/lb for single truckloads.
The index for scrap 304 turnings rose by 0.6¢/lb to 49.1¢/lb delivered and by 0.4¢/lb for 316 turnings to 66.9¢/lb delivered processor yard.
LME nickel prices increased by $226/mt from Monday with the official three-month LME Nickel contract settling at $15,646/mt on Tuesday. The official cash contract closed Tuesday at $15,602/mt, up by $205/mt from Monday.
The volatility in the LME Nickel market is causing some movement for stainless steel processor buying prices, though seasonal demand remains weak as mills slow down their purchases in a bid to dispose their inventory by the end of the year. As a result, market participants do not expect any big fluctuations in stainless steel prices at least until January 2021.