US stainless steel processor buying prices surged on Monday after LME nickel prices increased.
The daily Davis Index for 304 scrap solids moved up by 1c/lb to settle at 49¢/lb delivered processor yard while 316 solids also increased by a penny to 69¢/lb for single truckloads.
Scrap 304 turnings moved up by 3¢/lb to 45¢/lb with 316 turnings also rising by the same amount to 62¢/lb.
The official three-month LME Nickel contract increased by $90/mt from Friday to close at $12,850/mt on Monday. The official cash contract closed Monday at $12,750/mt, up by $75/mt from Friday’s close of $12,675/mt.
Market participants expect processor buying prices to follow the cues set by LME nickel and rise again if LME nickel strengthens further during the week.