US stainless steel processor buying prices increased slightly to reflect a gradual rise in LME nickel prices while demand still remains slow.
The daily Davis Index for scrap 304 solids inched up 0.8¢/lb to 74.3¢/lb delivered processor yard and grew for 316 solids by the same amount to 94.3¢/lb delivered processor yard for single truckloads.
Scrap 304 turnings were up by 1.8¢/lb to 71.3¢/lb delivered and increased by half a penny for 316 turnings to 84.5¢/lb delivered processor yard.
LME nickel prices were up by $79/mt from Monday with the official three-month LME Nickel contract settling at $16,199/mt on Tuesday. The official cash contract closed at $16,144/mt on Tuesday, up by $81/mt from the previous day.
After a robust start to the year with high demand for stainless steel scrap in the first quarter, demand from the domestic mills, looks slow for May which has kept the processors from buying more material. Sentiments remain cautious in hopes that the market might improve so sellers can offer higher prices.