Prime scrap was flat in Montreal and prices for some cut grades increased at the end of June ferrous scrap trading in Canada, as the region saw a spike in orders. However, the Toronto market, following trends set in Detroit last week, saw soft June buying programs.

 

In Toronto, #1 bundles and busheling both decreased by C$8/nt ($5.98/nt), while the latter remained unchanged in Montreal. 

 

The monthly Davis Index for #1 bundles in Toronto fell to C$373/nt delivered consumer, while # 1 busheling dropped to C$371nt delivered. 

 

The monthly Davis Indexes in Toronto for HMS 1&2 (80:20), turnings, P&S 5ft, and shredded declined by C$10/nt to C$240/nt delivered consumer, C$185/nt delivered, C$265/nt delivered, and C$303/nt delivered consumer, respectively.

 

In Montreal, the monthly Davis Index for #1 busheling was flat C$335/nt delivered consumer.

 

However, the indexes for HMS 1&2 (80:20) and P&S 5ft rose by C$20/nt to C$210/nt delivered consumer and C$235/nt delivered, respectively, while the index for turnings was flat at C$140/nt. The shredder feed index climbed by C$10/nt to C$190/nt delivered consumer.

 

Three boat sales over the past week-and-a-half in the Montreal region created demand for about 130,000mt of material for July delivery. The additional demand, according to a market participant, includes a need for 58,000mt of shredded, 45,000mt of HMS 1&2 (80:20), and 27,000mt of P&S 5ft.

 

Persistent ferrous scrap shortages in the Toronto region, which is the result of weak manufacturing activity, in tandem with the US exchange rate have put downward pressure on June pricing. Moreover, demand from mills, which are trying to sell inventory, remains low.

 

Market participants confirmed that scrap yards east of Toronto have been paying peddlers C$200/nt for cars. Scrap dealers remain pessimistic going into July. Some market participants told Davis Index there’s no upside going into next month and that the second half of 2020 “does not look good.” 

 

($1 = C$1.33)

Leave a Reply

Your email address will not be published.