Canadian ferrous scrap prices for the domestic market in May reflected a $10/nt increase in prime grades, while obsoletes declined. In general, the increase in #1 busheling was attributed to a similar positive trend in the US, while the decrease in obsoletes was attributed, for the most part, to exchange-rate parity between the Canadian and US dollars.
Scrap flows in Canada are reported as healthy but not generous. The spring weather has helped increase scrap generation as the summer months approach. Scrap supply levels are not reported to increase in the short term, according to contacts, as there are no significant demolition projects underway nor new significant industrial accounts that could surface.
In Ontario, the price of #1 busheling increased by C$10/nt to C$530/nt delivered consumer. The price of HMS I fell by C$5/nt to C$435/nt while P&S 5ft dropped by the same amount to $465-470/nt. Machine shop turnings (MST) also fell C$5/nt to $360/nt delivered, while shredded fell the same to $505/nt delivered.
It should be noted contacts in Toronto mentioned that one of the region’s mills had decreased its #1 busheling buys significantly, which could have prevented the grade in Canada from growing as much as it did in the US. Additionally, shredder feed was down in the Ontario region this month for a more significant C$30/nt compared to last month. Sources in the region reported that the shredder for one of the main buyers in the region was down for five week hence the limited purchasing.
Buyers in Ontario report that they expect cut grades and shredded to continue falling in June, while prime grades could go the other way and continue rising. It will be contingent on prime grades if Detroit and Chicago prices go up as well. Canadian participants are wary that steel prices cannot continue to climb aggressively, as that could prompt an increase in steel imports. Scrap prices in Canada and the US, according to them, are expected to remain stable in the next two to four months.
In Montreal, the price of #1 busheling increased by C$5/nt to C$240/nt delivered Montreal consumer. The price of HMS I fell by C$5/nt to C$305/nt delivered, P&S 5ft also dropped by C$5/nt to C$345/nt delivered, machine shop turnings fell C$10/nt to C$240/nt, while shredder feed decreased by C$15/nt to C$195/nt delivered.
$1 = C$1.37
