Domestic scrap prices in Poland have moved down in line with the international trend. The lack of steel demand has been the main reason for Polish producers’ reluctance to pay higher price levels for raw materials. Also, scrap procurement prices in alternative markets such as Germany or Turkey have also been moving down, not helping the situation.
Prices in the local Polish market for HMS I scrap are currently at €322/mt DAP, while bonus grade scrap is traded at €334/mt DAP. SteelOrbis has learned that new scrap such as E8 grades s currently priced at €345/mt DAP.
A Polish source said that Indian buyers’ bids for HMS I/II 80:20 scrap are currently at €320/mt ex-yard, prepaid, adding, “These bids are disrupting the market.” Polish mills’ inventories for finished steel are full, SteelOrbis hears, and demand for steel is still on the low side in the country. However, a slight recovery is anticipated, and so Polish producers have not taken a break from scrap purchases. According to a Polish source, “[Scrap procurement] volumes are limited and the targeted price levels are lower.” The expectations are for a downward revision of around €25-30/mt for domestic scrap prices in July. “This means €278/mt DAP for old scrap and €268/mt DAP for new scrap and automotive grades,” the source added.