SteelOrbis has been informed that ArcelorMittal's base prices for HRC in the Polish market for January production are currently standing at the level of €390/mt ($544/mt) ex-works, indicating €90/mt decrease compared to last month. Meanwhile, it is possible to find January production 0.5 mm 275 gr/m² zinc coating HDG from the same producers at €560/mt ($782/mt) ex-works, indicating €40/mt decrease compared to last month and CRC prices at the level of €480/mt ($670/mt) under the same conditions, indicating €80/mt decrease compared to last month.
On the other hand, Kosice, Slovakia origin CRC is being offered to Poland at €470/mt ($656/mt) DAF Poland indicating €65/mt decrease compared to last month, whereas Hungary origin CRC is being offered to the same country at €460/mt ($642/mt) indicating €75/mt decrease compared to last month and Russia origin CRC is being offered to Poland at €400/mt ($558/mt) indicating €85/mt decrease compared to last month - all for January production. While Russian origin 0.5 mm 100 gr/m² zinc coating HDG is being offered to Poland at €515/mt ($719/mt) DAF for January production indicating €75/mt decrease compared to last month, Ukraine origin HRC is being offered to the same country at €280/mt ($391/mt) DAF indicating €70/mt decrease compared to last month and same country origin CRC is being offered to Poland at €365/mt ($510/mt) DAF indicating €85/mt decrease compared to last month - all for January production.
While the import and local price levels in Poland have softened by average of €74/mt ($103/mt) compared to late November, import price levels have declined by average of €76/mt ($106/mt) and local production material prices have fallen by average of €70/mt ($98/mt). On the other hand, it is observed that the production cuts of producers in this country have not been able to stop price declines.
Despite abovementioned sharp declines, it seems that buyers are cautious for returning to the market. Even with reduced stocks and in need of material, end users have chosen to be cautious when they have seen the tightening in credit markets, declines in the consumer confidence index, sharp decline (19 percent) in zloty (PLN)/euro exchange rate. Thus, end users have been purchasing at minimum levels. According to a research made by IFO Institute (Institute for Economic Research at the University of Munich) , business confidence index in Germany has registered the lowest figures since November 1982. Due to the fact that Germany is one of the most important trading partners of Poland, the negative data in question will likely damage the foreign trade balance in Poland, that is to say, there is a chance that this data may impact the Poland's export volume in a negative way.
€1= $1.396