US stainless steel processor buying prices trended flat following a drop in LME nickel prices despite strong mill demand on Tuesday.
The daily Davis Index for 304 solids remained at 83¢/lb delivered processor yard and was flat for 316 solids at $1.10/lb for single truckloads.
Scrap 304 turnings were unchanged at 79¢/lb delivered and fell by 0.2¢/lb for 316 turnings to 99.8¢/lb, delivered processor yard.
LME nickel prices decreased by $146/mt from Monday with the official three-month LME Nickel contract settling at $18,226/mt on Tuesday. The official cash contract closed Tuesday at $18,213/mt, down by $145/mt from Monday.
Stainless steel processor buying prices have increased by 3-5¢/lb over the past week due to robust demand from mills. The drop in LME Nickel prices has not dampened processors’ sentiment as they expect mills to continue buying in the next quarter as well. The trend could keep stainless steel scrap prices high in July.