US stainless steel processor buying prices inched up on Tuesday on a better nickel market. The three-month LME nickel market jumped by almost $200/mt from yesterday’s close.
The daily Davis Index for scrap 304 solids was flat at 51.3¢/lb delivered processor yard and moved up for 316 solids by 0.5¢/lb to 71¢/lb for single truckloads delivered US processor.
The index for scrap 304 turnings rose by 0.2¢/lb to 46.2¢/lb delivered and increased by the same amount for 316 turnings to 71¢/lb delivered.
LME nickel prices increased by $199/mt on Tuesday from Monday’s close of $13,734/mt, settling at $13,933/mt today.
Despite the small increases in pricing, the market was relatively quiet ahead of the ferrous trade and the uncertainty it brings. The ferrous market looks to be trending soft sideways for August, which would typically increase offers to processors ahead of the potential drop. However, with stainless scrap supply tight, the offers are scarce.