Similar to the other countries in Europe, the local Polish scrap market has indicated a sharp increase over the course of March. “The rise in the international scrap market after Russia’s invasion of Ukraine has impacted the market, as well as the lack of some raw materials such as iron ore, pig iron and ferroalloys,” a Polish contact stated.
During the past month, prices in the local Polish market for HMS I scrap have moved up by €90-100/mt to the range of €550/mt DAP, from levels of €450-460/mt DAP. Higher grades like E6 scrap and rails are currently at around $700/mt ex-works.
However, expectations for the future trend of the local Polish scrap market are negative. “Since the shortage of raw material continues as energy prices are surging, we are anticipating some halts or lowering of capacity utilization rates by Polish steel producers,” a source commented. This may result in a decrease in scrap demand, which will eventually lead to lower price levels. “We can see a €30-40/mt decrease in local HMS I scrap quotations in April,” a source reported. On the other hand, since E6 grade scrap and rail scrap are the substitutes for pig iron, prices for these grades are expected to remain stable in the coming month. Another source commented, “No one knows what will happen for sure since this is a war economy, and new trading routes are being created. But we can obviously see that finished steel prices have reached very high levels. There is a question of sustainability.”
