The situation in local Polish scrap market became quiet again after the rises reported last week at the end of monthly negotiations. The main factors do not change: final products’ consumption is still on the low side, and steel traders didn’t accept increases in rebar prices which had to go back to previous levels.
Steel mills are refusing higher quality scrap, preferring less expensive shear material, because cash flows inside the country are quite bad at the moment, and payment conditions have been delayed to 60 days. A major Polish producer believes that the worse has passed, and he hopes that April will be a stable month: “Prices were unreasonably high during the last month and a half. We have to get back to reality,” he said. In spite of this, he reckons that scrap purchase prices may see a slight decrease.
Having said that, though, the overall sentiment has improved a little – spring has come, weather is warmer, and a better steel and scrap demand may come in the next weeks.
As for exports, collection prices to export yards remained unchanged week on week at €310/mt DAP for HMS I/II 80:20.