The local Polish scrap market has remained almost silent this week. The overall negative market conditions in Europe and internationally have caused the mood among market players to deteriorate. At the same time, though, the difficulties in finding tonnages in the previous few weeks in the local Polish scrap market have eased.
“The scrap market in Poland has stabilized a bit, but not significantly. It is still one of the worst markets in the European Union [because scrap collection prices are higher compared to other countries in Europe]”, a source commented. Considering the fact that scrap availability in the local market has increased lately due to a number of factors - such as lower demand both locally and from export markets - it can be anticipated that scrap prices will gradually soften.
Sources have confirmed that Polish mills’ negotiations for scrap in September have been concluded at prices down an average of €7-10/mt compared to the previous month, in line with the stance of producers in other European countries.
As for collection prices at export yards, they have officially remained at around €250/mt DAP. Nonetheless, according to unconfirmed rumors circulating in the market, they have also been heard at €230/mt DAP or lower - down by at least €20/mt week on week. Such a sharp drop seems unlikely at the moment, but it is fair to believe that a slight drop has actually happened.
While some exporters had been struggling to find scrap volumes in previous weeks, these difficulties have eased, as previously mentioned, thanks to the higher availability of scrap in the local market.