At the beginning of the year, the situation in the domestic scrap market in Poland is not much different from that in other European countries. Domestic scrap prices have remained almost unchanged compared to the last week of December. According to local sources, the market is still sluggish in terms of trading after the Christmas holidays, while some are expecting further declines both in scrap prices and in scrap demand.
“There may be an upward correction in the case of a lack of finished steel, but there won’t be due to massive exports from China, while the increasing costs of labor and energy are making the situation even worse,” one source said, adding that he did not believe there would be many changes in the overall Polish market situation during the first quarter of the year.
At the moment, HMS 1 collection prices stand in the range of €295-300/mt DAP, and, due to the lack of scrap demand from local steel producers, many suppliers are redirecting their material to export yards. According to sources, these prices levels are unchanged or up slightly compared to the last week of December.
Overall, the situation in the Polish scrap market is very similar to that in the rest of Europe: there is a lack of demand due to the finished steel crisis and, consequently, there is almost no movement.
“As you might know, the beginning of the year is always a bit crazy, everyone is anxious calling and asking for information, but, at the end of the day, nothing has changed,” a source commented.