Canadian prime and cut grades increased sharply in May, following a rise in Detroit pricing. Moreover, low feedstocks have resulted in a scrap shortage in Toronto, which sent prices surging.
In Toronto, #1 bundles and busheling increased by C$50/nt (US$35.67/nt), while #1 busheling increased by the same amount in Montreal.
In Toronto, the monthly Davis Index for #1 bundles increased to C$381/nt delivered consumer, while # 1 busheling rose to C$379nt delivered consumer.
The monthly Davis Indexes in Toronto for HMS 1&2 (80:20), turnings, P&S 5ft, and shredded rose by C$36/nt to C$250/nt delivered, C$195/nt delivered, C$275/nt delivered, and C$313/nt delivered, respectively.
In Montreal, the monthly Davis Index for #1 busheling rose to C$335/nt delivered consumer.
Cut grades in Montreal also increased in May. The index for HMS 1&2 (80:20) rose by C$30/nt to C$190/nt delivered consumer, while the indexes for turnings and P&S 5ft both increased by C$27/nt and C$33/nt to C$140/nt delivered and C$215/nt delivered, respectively. The index for shredder feed rose by C$40/nt to C$180/nt delivered consumer.
Remote pricing in Detroit caused a U$45/gt rise on prime scrap because the COVID-19 shutdowns have left too few players in the market to make pricing announcements. As a result, Toronto followed Detroit’s lead with major ferrous scrap price increases in May.
Stamping plants in Ontario will resume production, albeit at reduced levels, by May 18, which will raise demand for ferrous scrap. One market participant expressed belief that reduced capacities will prevent a glut of scrap going into June, which, he added, should bring yet more price increases. The feedstocks going into Toronto shredders remain low, and it has pushed prices upwards.
($1 = C$1.04)