The Canadian December ferrous scrap trading settled on Thursday with surges of C$80-100/nt on prime grades and C$50-90/nt on cut grades.
Limited supply and strong demand trends dominated the week, with high demand for prime grades from mills, especially in the Toronto region.
In Toronto, P&S 5ft initially transacted up C$70/nt following the price rises in the US’ Detroit and Chicago regions, before increasing by as much as C$90/nt or more, after being influenced by the soaring prices in Chicago and the Midwest. Depending on mill, price increases for the grade held the approximate price gap between P&S 5ft and Shredded at about C$10/nt, the same as November.
The monthly Davis Index for prime grades in Toronto surged by over C$100/nt with #1 bundles up by C$103/nt to C$430/nt delivered and settling at $439/nt delivered for #1 busheling, up by C$108/nt.
The index for #1 HMS rose by C$81/nt to C$337/nt delivered, while Machine shop turnings increased by C$93/nt to C$303/nt delivered mill, and Shredded climbed by C$88/nt to C$412/nt delivered.
The monthly Davis Index for P&S 5ft in Toronto increased by C$92/nt to C$401/nt delivered consumer, as some mills paid C$70-90/nt over November settled pricing for the grade.
Prices in Montreal increased for all grades with #1 busheling rising by $80/nt to C$345/nt delivered mill, and #1 HMS ticking up by C$74/nt to C$314/nt delivered. Machine shop turnings rose by C$75/nt to C$265/nt, P&S 5ft increased by C$80/nt to C$345/nt, and Shredder feed climbed by C$58/nt to C$228/nt all on a delivered mill basis.
A robust export market, scarce supply, and a ramp-up in demand for finished steel are likely to keep prices elevated into January, following the trends in the US, which place January scrap tags $20-30/gt above December settled prices.
($1=C$1.27)