The local Polish scrap market has remained stable week on week, but just like in other European countries, there is already talk about possible rises in scrap prices. On Monday, March 10, mills should publish their new scrap purchase prices for March contracts and the expectations are uncertain.
On the one hand, scrap sellers in the local market would like to see mills accepting prices €10-15/mt higher, but on the other hand, producers are not in a position to accept such requests.
“A €10-15/mt rise is a wishful thinking for sellers,”, a source at a major Polish mill commented, adding, “We are struggling to sell [our finished steel products], and the incoming flow [of scrap] is low. Our raw material stocks stand at an acceptable level, so we are under no pressure to buy. There is no reason why we should accept those rises.” According to the same source, this month’s contracts will remain stable or will rise by a further €5/mt at best compared to the current levels. finished steel demand is low. Last month’s contracts marked a sharp rise in scrap purchase prices compared to January, so finished steel consumers will not accept further rises for the final product.
At the moment, local sales prices from Polish traders are standing in the range of €310-315/mt for HMS I, around €290/mt for HMS II and around €320/mt for bonus grades. All prices are delivered to mill. Scrap demand is low in the local market, and it has also declined from the exports markets “due to Ramadan in Turkey”, a source said. Another factor has to be considered, though. The zloty is becoming stronger against the euro, becoming negative for exports. According to the European Central Bank, the exchange rate stood at €1 = PLN 4.177 on March 6.
In the light of this, local collection prices to export yards have remained stable week on week in the range of €310-320/mt DAP for HMS I/II 80:20 scrap.
The German scrap market has remained silent this week. Most players in the local market have remained in wait-and-see mode due to currency issues, while collection prices for export yards have been stable week on week in the range of €305-310/mt DAP for HMS I/II 80:20 scrap.
“I hope the market stabilizes in April”, a local trader in the German market commented, adding, “but the outlook is difficult to predict right now”. According to the same source, the European Commission’s announcement of €800 billion in funds allocated for European military expenses will have a positive impact on the steel segment.
