The Canadian December ferrous scrap trading settled on Thursday with surges of C$110/nt on prime grades and C$56-133/nt on cut grades.
Market participants considered the January ferrous market in Canada to be one of the strongest months as the domestic mill demand soared. That said, there is a sense of uncertainty in the market with the renewed COVID-19 related lockdowns in Ontario and Quebec.
In Toronto, P&S 5ft transacted within the price range of C$85-100/nt following the price rises in the US’ Chicago, and Midwest regions. Depending on mill, price increases for the grade held the approximate price gap between P&S 5ft and Shredded widened by C$5/nt from December to about C$15/nt.
The monthly Davis Index for prime grades in Toronto surged with #1 bundles up by C$109/nt to C$539/nt delivered mill and settling at C$549/nt delivered for #1 busheling, up C$110/nt.
The index for #1 HMS rose by C$133/nt to C$470/nt delivered, Machine shop turnings increased by C$90/nt to C$393/nt delivered mill and shredded climbed by C$108/nt to C$520/nt delivered.
The monthly Davis Index for P&S 5ft in Toronto increased by C$107/nt to C$508/nt delivered.
Prices in Montreal increased for all grades with #1 busheling rising by $110/nt to C$455/nt delivered mill, and #1 HMS ticking up by C$91/nt to C$405/nt delivered. Machine shop turnings rose by C$55/nt to C$320/nt, P&S 5ft increased by C$90/nt to C$435/nt, and shredder feed climbed by C$56/nt to C$284/nt all on a delivered mill basis.
Overall, the export markets have been strong through the month, however, Turkish imports have decelerated after buyers became inactive earlier this week. The domestic market is also expected to be sluggish in February with prices moving sideways to downwards.