Low material flows into Toronto-area scrapyards led to a price adjustment in the region at the end of September ferrous scrap trade, with prime grades surging by C$32/nt ($24.20/nt), and cuts by C$40/nt on Tuesday.
In Toronto, the monthly Davis Index for #1 bundles increased C$32/nt to C$329/nt delivered consumer, while # 1 busheling rose by the same amount to C$327/nt delivered consumer.
The monthly Davis Indexes in Toronto for HMS 1&2 (80:20) increased by C$40/nt to C$253/nt delivered consumer, while turnings surged by C$46/nt to C$210/nt delivered consumer. P&S 5ft and shredded increased by C$40/nt to C$278/nt delivered consumer and C$328/nt delivered, respectively.
In Montreal, the monthly Davis Index for #1 busheling climbed by C$20/nt to C$275/nt delivered consumer, while machine shop turnings increased by C$30/nt to C$185/nt delivered consumer.
The monthly Davis Index in Montreal for HMS 1&2 (80:20) increased to C$235/nt delivered consumer, while the P&S 5ft index rose to C$260/nt. The index for shredder feed in Montreal rose to C$180/nt delivered consumer.
September marked the second straight month of increases after COVID-19 pandemic-induced monthly declines in Canada’s ferrous scrap market. According to a market participant, steel mills are running at around 55-60pc capacity, but scrap flows have been low. The price adjustment should reverse that trend.
The torrid export market has also been responsible for the price increases this month. The weak US dollar has made Canadian ferrous scrap imports much cheaper, also contributing to the material scarcity.