Contrary to the rest of the European region, the local Polish scrap market has indicated an uptrend during the month of July amid the restocking of steel and raw materials observed in the country early in the month. Market players state that Polish mills are currently following diverse price policies. Some are trying to lower their scrap procurement quotations, while others are pushing for a rise. According to a source, the main concern in Poland right now is the possible reduction of gas and energy supplies in the coming winter. “Polish steelmakers are afraid of what winter will bring, and so they are trying to replenish their inventory levels before any possible gas and energy cuts,” a source commented regarding the price rise.
During the past month, prices in the local Polish market for HMS I scrap have moved up by €14-24/mt to €354/mt DAP on average fixed in a recent deal, from levels of €330-340/mt DAP. Higher grades like bundle scrap are currently at around €402/mt CFR as compared to €340-350/mt DAP, according to sources.
Polish mills currently have a lot of raw material and finished steel inventories on hand. What separates them from the rest of the EU is their policy to get ready for the demand anticipated in the coming months. SteelOrbis has learned that to get ready for the potential disruptions of gas and energy supplies from Russia, Poland is importing large tonnages of coal. According to a Polish source, Poland will buy 4.5 million tons of coal in the period up to late September and early October. This traffic is causing difficulties at Polish ports for the movement of other materials, one source noted. “No one can make a proper estimation for the future trend of scrap in Poland as mills seem not to have decided a full-scale policy, but I think there is some more room for another rise in the coming weeks,” another source stated.