A flat US exchange rate and a dearth of trucking options resulted in declines across most ferrous grades in October.
In Toronto, #1 bundles and busheling declined by C$12/nt and ($9.15/nt) C$6/nt, respectively, with the latter falling by C$10/nt in Montreal.
In Toronto, the Davis Index for #1 bundles decreased to C$317/nt delivered consumer, while # 1 busheling fell to C$321/nt delivered consumer.
The monthly Davis Indexes in Toronto for HMS 1&2 (80:20) decreased by C$2/nt to C$251/nt delivered consumer, and shredded declined by C$4/nt to C$324/nt delivered. Turnings were flat at C$210/nt delivered, but the index for P&S 5ft surged by C$21/nt to C$299/nt delivered consumer.
In Montreal, the monthly Davis Index for #1 busheling dropped by C$10/nt to C$265/nt delivered consumer, while machine shop turnings dropped to C$190/nt delivered. The Davis Index in Montreal for HMS 1&2 (80:20) increased by C$2/nt to C$237/nt delivered consumer, while the P&S 5ft index rose to by C$5/nt to C$265/nt. The index for shredder feed in Montreal declined by C$10/nt to C$170/nt delivered consumer.
Canada has confirmed a second wave of COVID-19 infections, resulting in modified shutdowns in the country’s two largest cities—Montreal is on “red alert,” and nearly all businesses will remain shut through October. Trucking services have also largely dried up as a result of the pandemic, and unless traders have access to rail or booked sales early, they won’t be able to move many tons, resulting in a paucity of export volumes and flat tags.
With the US presidential election looming next month, as well as existing uncertainty pertaining to the pandemic, several market participants told Davis Index that they envision prices to remain flat through the end of the year.
(C$1 = $0.76)