Local Polish scrap prices began the negotiations for the new month with a downtrend these days, which is in line with SteelOrbis projection and with the overall trend in the European scrap market.
The low demand for exports and the excess of scrap in the local market might be some of the causes of the decline. Sources reported that a major local mill in Poland confirmed a decline of PLN 150/mt (around €35/mt) for May round of purchases, but there are talks about other mills also bidding at PLN 200/mt (€47/mt) lower levels compared to April. These bids, though, have not yet been accepted by the time of publication.
As for exports, local collection prices of HMS I scrap to export yards have been reported at around €245-250/mt DAP, down by €10-15/mt week on week. The level is in line with other EU countries’ collection prices at ports.
On the other hand, finished steel demand seems standing at decent levels, and media sources reported that Cognor Group, one of the main steelmakers in Poland, is about to complete the construction of a new rolling mill in Siemianowice Śląskie (Silesia). The plant will produce light profiles with an annual capacity of 450,000 mt, and the total investment amounted to PLN 800 million.
€1 = PLN 4.27 (May 8)
