US stainless steel processor buying prices increased across all grades on Monday despite a fall in the LME Nickel market.
The daily Davis Index for scrap 304 solids inched up by 0.2¢/lb to 59.3¢/lb delivered processor yard and rose by 0.1¢/lb for 316 solids to 80.3¢/lb for single truckloads.
The index for scrap 304 turnings increased by 0.6¢/lb to 55¢/lb delivered and moved up by 1.1¢/lb for 316 turnings to 72.7¢/lb delivered processor yard.
LME Nickel prices declined by $26/mt from Friday with the official three-month LME Nickel contract settling at $16,388/mt on Monday. The official cash contract closed Monday at $16,343/mt, down by $30/mt from Friday.
Stainless steel processor buying prices have been increasing on the strengthening demand from domestic mills. Some processors believe that mills are trying to cover for the halt in production during the second and third quarter of the year due to the COVID-19 lockdowns, which in turn is causing the current surge in prices.