NEW YORK Stainless scrap
prices have risen again due to higher nickel prices on the
London Metal Exchange.
Processors are now buying 304
clips and solids at $1,680 to $1,750 per gross ton, up from
$1,635 to $1,680 per ton previously; and 316 clips and solids
at $2,310 to $2,350 per ton, up from $2,250 to $2,320 per
Dealers showed greater
willingness to sell at the higher prices, with some adding that
they were moving more material now due to uncertainty about tax
rates after the fiscal cliff negotiations.
"You know what 2012 is. You
dont know what next year is going to bring," one dealer
A processor agreed.
"Theres been some more activity as people look to cash
out in 2012 rather than pay higher taxes in 2013," he said.
However, scrap flow is still
comparatively weak due to the recently lowered prices,
according to one broker. "Some will always come out, but I
dont know how much physically is out there. I dont
think the price has generated enough scrap," he said.
Some processors also said that
they were willing to pay more due to an expected uptick in
consumer buying in the first quarter.
"Everyones gambling on
that," according to a second processor.
The cash nickel contract closed
the London Metal Exchanges official session at $17,605
per tonne Tuesday, up 1.6 percent from $17,330 per tonne