SteelOrbis has been informed that ArcelorMittal has decreased its base prices for HRC in the Polish market by €70/mt ($88/mt); accordingly, the price of November production material is standing at the level of €540/mt ($677/mt). Meanwhile, it is possible to find September/October production HRC at more reasonable levels, i.e. at €475/mt ($595/mt), and also CRC prices at the level of €550/mt ($689/mt) under the same conditions. As for the export offers to the Polish market, the Russian mill Severstal has been offering 2 mm HRC at the level of €350/mt ($439/mt), whereas the Ukranian producer Ilyich has been offering heavy plate at €520/mt ($652/mt), both for prompt shipments. In this market, the high stock levels have not shown any change, although mills and traders have adjusted their price levels and rolled back their production. According to a poll conducted among traders in the Polish market, the trading volume in November has shown a tightening of sixty percent as compared to November 2007.
In the Polish market, prices maintain their decreasing course, just as in all other European countries. Especially, finished goods produced by using high-priced raw materials have forced the mills to determine more competitive prices as compared to the current market conditions. On the other hand, the weak demand is not based on sensitivity to prices, as is clear from the lack of reaction of end-users to developments seen in price levels for weeks now and even for months.
In addition, as Polish banks have cut back credits, the existing money shortage has been exacerbated. In Poland, the business world has already requested the country's central bank to decrease the interest rates and provide relief for the market. Next week, the October industrial output growth rates will be issued by the Polish Statistics Institute. Experts are predicting a 2.2 percent growth for October. However, in spite of everything, Poland seems to be one of the fastest growing markets in Europe.