Prime grades declined by C$45-50/nt in Canada during the July ferrous scrap trade.
Stelco, a major steel mill in the Toronto region, took its furnaces offline for realignment, removing significant demand from the market, especially for P&S 5ft scrap in a muted market where demand for prime scrap remains low.
Prime scrap declined by C$45/nt in Toronto and saw a steeper decline of C$50/nt in Montreal, where cut grades were spared the precipitous drop they had in Toronto.
In Toronto, #1 bundles and busheling decreased by C$45/nt (US$32.71/nt) and fell by C$50/nt in Montreal.
The Davis Index for #1 bundles fell to C$328/nt delivered consumer in Toronto, while # 1 busheling dropped to C$326/nt delivered consumer.
The monthly Davis Indexes in Toronto for HMS 1&2 (80:20) declined by C$20/nt to C$218/nt delivered consumer, while turnings fell by C$24/nt to C$164/nt delivered. The index for P&S 5ft declined by C$24/nt to C$243/nt delivered consumer, and the shredded index fell by C$30/nt to C$275/nt delivered.
In Montreal, the monthly Davis Index for #1 busheling fell by C$50/nt to C$302/nt delivered consumer.
The Davis Index in Montreal for HMS 1&2 (80:20) fell by C$15/nt to C$195/nt delivered consumer, while the P&S 5ft index decreased by C$1/nt to C$234/nt. The index for turnings dropped by C$130/nt to C$10/nt delivered consumer, and the shredder feed index declined by C$18/nt to C$172/nt delivered.
Market participants estimate that Toronto area mills are operating at only at 50pc of their full capacities and will remain at those levels for the time being. However, a languid global economy is the biggest reason for sunken demand.
In Toronto, virtually nobody is buying #1 bundles or #1 busheling. Nevertheless, a larger trend is playing out in the region where financially sound dealers are hoarding tonnage, waiting for prices to rise, at which point they plan to make significant splashes in the market. When that will occur, especially considering the current economic situation, is anybody’s guess. According to a scrap dealer, with an existing glut of scrap in the market, prices likely will not rise next month either.