The local scrap market situation in Poland has remained uncertain this week, with contrasting information coming from market sources. As in the local German market, in Poland scrap purchase prices from mills are - overall - higher than the prices that export yards are paying and this is causing a reduction in scrap flows for export.
“The situation is not easy. Scrap flow is slow because mills are paying more for scrap in the local market,” a Polish scrap exporter stated. “Moreover, this year freights are higher than the last and it is becoming harder to find vessels,” he added. The same source also mentioned that the dollar-zloty exchange rate is unfavorable for sales, as it is now standing at $1 = PLN 3.71, versus $1 = PLN 4.14 at the beginning of the year.
According to market reports, a major Polish steel producer has chosen to keep its scrap purchase prices unchanged compared to May, paying around €280/mt delivered for HMS I equivalent, €265/mt delivered for HMS II equivalent and almost €290/mt for bonus grades.
Prices at ports, however, have been reported at around €270-275 DAP for HMS I, and around €250/mt for HMS II. Different information has been circulating in the market, though, as SteelOrbis also recorded around €250/mt for HMS I. These data, however, could not be verified at the time of publication.
Finally, it is worth mentioning that, as SteelOrbis reported previously, that ArcelorMittal Poland is negotiating with the Polish government to receive a proposed funding of PLN 1 billion ($267.88 million) for the revamping of the company’s Dąbrowa Górnicza plant.