US stainless steel processor buying prices increased across most grades on Thursday.
The daily Davis Index for scrap 304 solids ticked up to 49¢/lb from 48.8¢/lb delivered processor yard and rose for 316 solids to 67.3¢/lb for single truckloads from 66.8¢/lb.
The index for scrap 304 turnings dropped to 44.3¢/lb delivered from 44.8¢/lb delivered and moved up for 316 turnings by 2.6¢/lb to 59.8¢/lb delivered.
LME nickel prices dropped by $140/mt from Wednesday with the official three-month LME Nickel contract settling at $12,437/mt on Thursday. The official cash contract closed Thursday at $12,386/mt, down by $124/mt from Wednesday.
Stainless steel demand is gaining strength as businesses restart operations. However, supply remains tight adding to the strain on pricing. As a result, processors expect prices to continue north, despite decreases on the LME nickel, until more robust supply is restored.