The local Polish scrap market remained quiet this week, at the end of monthly negotiations for scrap purchases in September. The market mood is still cautious and resigned, while the finished steel segment is going through a critical period.
As SteelOrbis reported earlier, the newly elected Polish government is considering the acquisition of selected ArcelorMittal assets in Poland, including the Dąbrowa Górnicza and Katowice steel plants, to counterbalance the company’s broader strategy of scaling down production in the European Union. “It will have serious consequences on the Polish and European steel market,” one source commented.
Finished steel demand in the Polish market is still on the low side, and mills have reduced their scrap purchase volumes. Moreover, some plants will remain closed for maintenance in October and November, and this will likely reduce scrap demand further.
Scrap availability in the local market is enough to cover the market needs so far, so much so that scrap export yards are paying around €240/mt DAP (in Gdańsk and Szczecin) to secure HMS I volumes. This price is down around €10/mt compared to last week, but it is still quite high compared to Baltic ports where the price level stands at around €225/mt DAP for the same grade.
The factors that are weighing on exporters, at the moment, are high freight rates, delayed deliveries by vessels, and the dollar-zloty exchange rate, which has been stable at PLN 3.63 to the dollar compared to the end of July, when it was already unfavorable for exports.