US stainless steel processor buying prices were rangebound on Thursday on slow market movement and increasing LME nickel prices.
The daily Davis Index for scrap 304 solids remained at 74.8¢/lb delivered processor yard and was up for 316 solids by 0.3¢/lb to 96.8¢/lb for single truckloads.
Scrap 304 turnings rose by 0.3¢/lb to 69.8¢/lb delivered and inched up for 316 turnings by 0.2¢/lb to 87.7¢/lb delivered processor yard.
LME nickel prices increased by $195/mt from Wednesday with the official three-month LME Nickel contract settling at $17,457/mt on Thursday. The official cash contract closed Thursday at $17,433/mt, up by $210/mt from Wednesday.
Stainless steel processor buying prices have been increasing this week in tandem with LME nickel prices. Demand for the metal, which had subsided at the beginning of April is strengthening again but not at the same levels seen at the beginning of the year, resulting in sluggish trade.
With the ferrous market expected to trend sideways in May, processors anticipate prices for stainless steel to soften and demand to stay weaker than Q1 2020.