No significant developments have been reported to SteelOrbis this week in the local Polish scrap market. Monthly scrap purchase negotiations have ended, while there have been few changes in the fundamentals of the European market.
As regards scrap availability in the local market, an institutional source in Poland commented, “The surplus of scrap in Poland compared to the usage by local steelworks remains at the level of 2 million mt of scrap per year, a level that has been constant for years, so it is difficult to talk about a lack of scrap availability.” As SteelOrbis had reported earlier, several market players in Poland are still fighting against the idea of banning scrap exports, as scrap availability is not the main issue for local steel producers. Poland, in fact, has one of the highest electricity price rates in the European Union, as reported yesterday, October 22, at €137.5/MWh, compared to, for example, €69.6/MWh in France on the same date.
In the meantime, the Polish government is continuing to closely monitor ArcelorMittal’s strategy in the country, while Wojciech Balczun, Poland’s minister of state assets, will soon meet with officials from the company, as local media have reported.
Meanwhile, in the export market, freights and the zloty-dollar exchange rate continue to be stable at unfavorable levels for sales from Poland, with the latter being at 3.65 today, October 23. In consequence, HMS I scrap from Polish export yards have remained more or less stable in a range of €242-247/mt DAP this week, whereas export sales from Poland to Turkey for HMS I/II 80:20 scrap have been reported at $346-347/mt CFR, up slightly compared to the last scrap deals done from Poland to Turkey.
