As anticipated by SteelOrbis, the local Polish scrap market moved down in July. “It is all peace and quiet,” a Polish source reported. A seasonal demand lull continues in Poland, while there is only some demand coming out of Germany. “Also, Turkey’s import scrap prices are exerting pressure on prices,” the source added.
Prices in the local Polish market for HMS I scrap are currently at €295/mt DAP, moving down from €322/mt DAP recorded early July. However, the pace of collection pace is very slow right now. Considering the European scrap prices in Turkey at around $346/mt CFR, Polish scrap exporters say that this level means a complete loss in terms of trading. “We believe the ones accepting these levels are trying to maintain their credit lines, show some turnover or maintain cash flow,” a trader said.
For now, the Polish scrap market is expected to move sideways. While there is pressure on scrap prices, scrap generation is also on the short side. Some market players believe a price increase will be seen in the future but not in August. According to one Polish source, “It is postponed to September since the performance of the international steel market is not great.”
