US stainless steel processor buying prices increased for 304 and 316 scrap on Wednesday.
The daily Davis Index for 304 solids rose by a penny to 54¢/lb delivered processor yard, and by 2¢/lb for 316 solids to 74¢/lb for single truckloads.
Scrap 304 turnings increased by 1¢/lb to 49¢/lb, while 316 turnings decreased by a penny to 63¢/lb.
US stainless steel processor buying prices for 201 and 301 solids increased by 2¢/lb from last week to 31¢/lb and to 42¢/lb, respectively. Scrap 309 solids rose by 3¢/lb to 74¢/lb, while scrap 310 solids increased by 2¢/lb from last week to settle at $1.14/lb on Wednesday.
LME nickel prices surged by $155/mt from Tuesday, with the official three-month LME Nickel contract settling at $12,805/mt on Wednesday. The official cash contract closed Wednesday at $12,700/mt, increasing by $145/mt from Tuesday.
According to market participants, rising iron and LME nickel prices, as well as tight supply in the market, mainly contribute to stainless steel’s intrinsic value, which has caused US processor buying prices to spike.