SteelOrbis has been informed that ArcelorMittal's March base prices for HDG and CRC in the Polish market are currently standing at the level of €490/mt ($621/mt) ex-works and €450/mt ($570/mt) ex-works, respectively. The offers in question have shown no change as compared to one month ago. Meanwhile, it is possible to find March production HRC from the same producer at €350/mt ($443/mt) ex-works, down €20/mt month on month.
Looking at the import flats offers in the Polish market for March output, Russian mill Severstal is offering HRC to Poland at the level of €340/mt ($431/mt) DAF, indicating a decrease of €20/mt as compared to last month. On the other hand, Slovakian origin HRC from U.S. Steel Kosice is being offered to Poland at €330-340/mt ($418-431/mt) DAF, indicating a €40/mt decrease month on month.
From the end of January through February Polish production materials have trended sideways in general, excluding hot rolled coil which have decreased by €20/mt. In the same period, prices of import materials have decreased by an average of €30/mt. On the other hand, domestic prices decreased by €74/mt and import prices declined by €76/mt in the November-December period. However, prices showed a softer downtrend in January. In line with our expectations at the end of January, with production cutbacks and cost pressure factors affecting the market noticeably in February, flats prices have moved on a flat trend during the current month.
Four months ago the euro/zloty exchange rate was at the level of 3.06, whereas it has exceeded the level of 4.67 as of February 27. In other words the zloty has lost 52 percent of its value in the last four months. The increased strength of the euro has meant that import materials are now at a greater disadvantage. However, Russian and Ukrainian origin materials have been slightly less affected by this situation.
€1 = US$1.26653