Monthly negotiations for scrap contracts are underway these days on the local scrap market in Poland. According to SteelOrbis’ latest report, scrap suppliers have been hoping for €10-15/mt rises in scrap purchase prices from mills, but the latter have seemed ready to grant an increase of €5-10/mt at best.
A local mill in Poland reported to have accepted a €7/mt rise for HMS I/II scrap and a €12/mt increase for HMS II scrap, whereas purchase prices for new scrap have remained stable compared to last month. This means that, in the end, buyers and sellers managed to meet each other halfway.
Nonetheless, the overall scenario in the local Polish market remains the same: scrap inflows are low and finished steel demand has yet to recover. The euro-zloty exchange rate remains negative for exports, and scrap collection prices to export yards have declined by around €10/mt on the higher end, settling at around €310/mt for HMS I/II 80:20. “We are trying, but it’s not easy,” a local scrap trader commented.
In the meantime, sources reported that the local flat steel producer Huta Częstochowa - formerly owned by bankrupt Liberty Częstochowa - may become the property of the Ministry of National Defense of Poland, being a strategic asset for both the Polish economy and the national defense of the country.
€1 = PLN 4.1965