US stainless steel processor buying prices were rangebound for most grades on Wednesday amidst strong mill demand and increasing LME nickel prices.
The weekly Davis Index for 201 solids was flat at 51¢/lb delivered processor yard and rose for 301 solids by 0.7¢/lb to 66¢/lb for single truckloads.
Scrap 309 solids increased by 1.4¢/lb to $1.037/lb delivered and moved down for 310 solids by 0.4¢/lb to $1.603/lb delivered. Scrap 330 solids decreased by 3.6¢/lb to $2.587/lb delivered processor yard.
For 409/410 solids, the index remained flat at $560.3/gt delivered processor yard and grew by $17.3/gt to $652.3/gt for 430 solids delivered.
Demand for stainless steel scrap has been robust since the beginning of the month and processors are expecting this trend to continue. LME nickel prices have also been increasing which is contributing to rangebound price movements. Some participants expect a slight supply tightness if demand remains strong.
The daily Davis Index for scrap 304 solids was flat at 78¢/lb delivered processor yard and inched down for 316 solids by 0.7¢/lb to $1.003/lb for single truckloads.
Scrap 304 turnings fell by 0.7¢/lb to 73.3¢/lb delivered and decreased for 316 turnings by the 0.4¢/lb to 91.7¢/lb for single truckloads.
LME nickel prices were up by $266/mt from Tuesday with the official three-month LME Nickel contract settling at $18,117/mt on Wednesday. The official cash contract closed at $18,088/mt today, up by $260/mt from yesterday, but down by $45/mt from 18,133/mt on Jun 2.