US stainless steel processor buying prices were rangebound on Friday, depending on grade despite the three-month LME nickel market climbing by almost $251/mt from Thursday’s close.
The daily Davis Index for scrap 304 solids inched up by 0.3¢/lb to 53¢/lb delivered processor yard while 316 solids rose by 0.1¢/lb to 72.5¢/lb for single truckloads delivered US processor.
Scrap 304 turnings was the only grade to decline, with the Davis Index for the category dropping by 0.4¢/lb to 48¢/lb delivered. The index for scrap 316 turnings remained unchanged at 64.5¢/lb delivered on Friday.
LME nickel prices increased by $251/mt from Thursday’s close of $15,400/mt to end at $15,651/mt on Friday.
Suppliers expected higher prices this week due to the surge in the LME Nickel market but flows and inventories are adequate against slowing demand, thus balancing the market for now. Processors expect a higher chance of a downside when buying scrap in the short term, which will limit price increases.