As domestic scrap prices in Poland have moved down just slightly over the month of September, they are considered to have stabilized now. “Prices in our region have changed only a bit,” a Polish source commented. Despite the energy crisis which is strongly felt in the EU region, figures show that industrial production in Poland increased in August, similar to July. The third quarter of the year is expected to indicate an overall positive growth in Poland.
During the past month, prices in the local Polish market for HMS I scrap have moved down slightly to €340-360/mt DAP from the average of €354/mt DAP. “The production cuts in Poland have been slower and more controlled as compared to initial expectations,” according to market players.
Another important development is the measures taken by Polish ports. Since Poland is highly dependent on coal usage and due to the ongoing energy shock in the region, Polish ports have asked traders to empty ports as much as possible to prepare for coal transportation. According to a Polish source, “This will cause most scrap to stay inland and will exert pressure on local prices.” The traders or companies that have their own warehouses or yards at Polish ports are allowed to continue stocking but those with leases can be prevented from bringing new materials to the ports, SteelOrbis has learned. “Since the government’s first target is to meet coal needs for winter, there may be some obstacles for the other companies,” a Polish source commented. The congestion at Polish ports is expected to continue at least until the end of this year. But SteelOrbis’ contacts do not expect the government to ask Polish steelmakers to stop or halt production during winter. “They would not want to kill the economy,” one source commented.
