US stainless steel processor buying prices increased across all grades on Tuesday amidst tight supply and increasing LME nickel prices.
The daily Davis Index for scrap 304 solids rose by 0.2¢/lb to 66.7¢/lb delivered processor yard and by the same amount for 316 solids to 87.7¢/lb for single truckloads, as yards held back supply to mills.
The index for scrap 304 turnings also went up by 0.3¢/lb to 61.8¢/lb and increased by 0.2¢/lb for 316 turnings to 79.7¢/lb delivered processor yard.
LME nickel prices rose by $34/mt from Monday with the official three-month LME Nickel contract settling at $17,685/mt on Tuesday. The official cash contract closed Tuesday at $17,650/mt, up by $56/mt from Monday.
Many scrap yards are now holding back material, leading to inflated prices over the past couple weeks. Growing demand from mills, paired with material availability being subdued, has put upward pressure on stainless steel processor buying prices.