US stainless steel processor buying prices rose across all grades on Monday on increasing LME nickel prices.
The daily Davis Index for scrap 304 solids increased by 2.2¢/lb to 74.2¢/lb delivered processor yard and inched up for 316 solids by 1.3¢/lb to 95¢/lb for single truckloads.
The index for scrap 304 turnings rose by 1.8¢/lb to 70.8¢/lb delivered and increased for 316 turnings by 0.9¢/lb to 85.2¢/lb delivered processor yard.
LME nickel prices moved up by $302/mt from Friday with the official three-month LME Nickel contract settling at $16,473/mt on Monday. The official cash contract closed Monday at $16,425/mt, up by $304/mt from Friday.
The market remains cautious amid the volatility of LME Nickel, which has caused stainless steel prices to fluctuate throughout this month. A gradual decline in mill demand could result in significant price swings, according to some market participants, because of which, processors are preferring to buy more material while prices are comparatively stable.