US stainless steel processor buying prices increased across most grades in tandem with the rising LME nickel market on Monday.
The daily Davis Index for scrap 304 solids rose by 0.5¢/lb to 79.5¢/lb and grew for 316 solids by the same amount to $1.010/lb delivered processor yard for single truckloads.
The index for scrap 304 turnings rose by a penny to 71.5¢/lb and was unchanged 316 turnings at 90¢/lb delivered processor yard.
LME nickel prices increased by $210/mt from Friday with the official three-month LME Nickel contract settling at $19,722/mt on Monday. The official cash contract closed Monday at $19,689/mt, up by $193/mt from Friday.
Stainless steel processor buying prices have risen by 6-10¢/lb since the beginning of 2021, aided by continued demand from mills and rising LME Nickel prices. Processors had expected a slight drop in February owing to lower ferrous scrap prices in the US domestic market, but strong mill demand, as well as an improved LME Nickel market, has kept stainless scrap prices stable for now. Processors, however, are seeking more clarity on whether this trend will continue into March.