Canada ferrous prices declined in February following a supply and demand imbalance and trends established in the US last week.
Prime scrap prices declined by C$6/nt ($4.50/nt) in Toronto and by C$13/nt in Montreal amid dwindling demand.
In Toronto, the Davis Index for #1 bundles declined to C$339/nt delivered mill in February from C$345/nt in January, while #1 busheling decreased to C$336/nt from C$342/nt delivered.
The Davis Index for HMS 1&2 (80:20) declined to C$267/nt from C$287/nt delivered, while machine shop turnings fell to C$205/nt from C$225/nt.
The monthly Davis Index for P&S 5ft declined to C$293/nt delivered in February from C$313/nt a month earlier, while the Index for shredded scrap declined to C$324/nt from C$344 delivered.
In Montreal, the Davis Index for #1 busheling declined to by C$13/nt to C$300/nt delivered from C$313/nt, while it decreased for HMS 1&2 (80:20) by C$25/nt to C$228/nt delivered. The Index for P&S 5ft fell by C$23/nt to C$250/nt delivered in February.
The Davis Index for machine shop turnings decreased by C$23/nt to C$250/nt delivered, and declined by by C$13/nt to C$175/nt delivered for shredder feed.
The east coast has a glut of cut grades and shred which, in normal circumstances, would be Turkey-bound. However, the country is having trouble moving its finished steel now. While demand from domestic Canadian mills is healthy, oversupplied scrap ensured downward price pressure in February.
Market participants aren’t surprised by prime and cut grades declining this month in light of historical trends. Mills appear to be taking advantage of decreased demand by maintaining low inventories. However, some market participants feel prices will rise in March.
US$1 = C$1.33 as on February 10, 2020