US stainless steel processor buying prices were rangebound on Tuesday following rising LME nickel prices.
The daily Davis Index for scrap 304 solids increased by 0.3¢/lb to 75.5¢/lb delivered and was flat for 316 at 98¢/lb delivered processor yard for single truckloads.
Scrap 304 turnings rose by 0.2¢/lb to 70.5¢/lb delivered and was unchanged 316 turnings at 88¢/lb delivered processor yard.
LME nickel prices were up by $373/mt from Friday with the official three-month contract settling at $17,885/mt on Tuesday. The official cash contract closed at $17,861/mt today, up by $384/mt from Friday. The LME was closed for trading on Monday due to the May 1 holiday.
Demand has weakened in May as mills, which procured primary material such as ferro-nickel and ferro-chrome recently reduced scrap raw material volumes in stainless steel production. Still, stainless scrap prices are likely to rise given the record-breaking increase on LME Nickel today, and most processors looking to book forward deals for July.