Rumors of declines have emerged in the local scrap market in Poland this week, as hopes for stability have disappeared with the worsening of sentiment in all European scrap markets.
According to SteelOrbis’ information, current purchase prices by mills are standing at around €270/mt delivered for HMS I, around €260/mt delivered for HMS II and around €275/mt delivered for bonus grades.
“Such little difference between lower [scrap] grades and higher [scrap] grades is due to the fact that mills who produce high quality steel are working at a very slow pace, [finished steel] demand is at a low level. Everyone wants older scrap”, a source commented. These prices are lower compared to other European countries’ levels, but sources have reported that Polish mills are planning to cut prices further as scrap consumption will be halved during the summer months. “Everything [the market] is at a standstill”, another source said.
On the export side, no brighter news is circulating. The number of vessels available for exports is reduced, and the dollar-zloty exchange rate is still unfavorable (1 $ = 3.63 PLN). Since exporters are paying between €240/mt and €250/mt DAP for HMS I scrap, down by around €5-10/mt compared to last week, scrap collectors are continuing to address their flows to the local Polish market.
Another issue that has been discussed among exporters is uncertainty regarding the Red Sea situation, and the consequences that Houthi attacks on vessels navigating that sea route may have on international flows of material.