Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Canada ferrous scrap prime and cut grade prices saw steep declines in April indicating mills are tapping into their inventories due to the economic impact of the COVID-19 pandemic.


In Toronto, the monthly Davis Index for #1 bundles and busheling decreased by C$22/nt ($15.84/nt) to C$331/nt delivered consumer and C$329/nt delivered, respectively. In Montreal, the index for #1 busheling fell by C$25/nt to C$285/nt. 


The monthly Davis Indexes in Toronto declined by C$51/nt for HMS 1&2 (80:20), turnings, P&S 5ft, and shredded to C$214/nt delivered consumer, C$159/nt delivered, C$239/nt delivered, and C$277/nt delivered, respectively.


Cut grades in Montreal also declined in April. The index for HMS 1&2 (80:20) declined by C$70/nt to C$160/nt delivered consumer, while the indexes for turnings and P&S 5ft both decreased by C$71/nt to C$113/nt delivered and C$182/nt delivered, respectively. The Davis Index for shredder feed fell by C$56/nt to C$140/nt delivered consumer.


Canadian market participants remain concerned about the impact of lockdowns gripping much of the world, with one veteran supplier stating he had never experienced anything like it. However, some market participants believe that Canadian ferrous scrap prices will rise as early as next month as mills use up their inventories. As limited inventories run thin, prices could rise in May.

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