Polish domestic scrap prices rise in May, new player enters export market

Although the increases have been higher than previously indicated, the latest data published by IPHGZ, the Polish Metallurgical Chamber of Industry and Commerce, has confirmed the trend observed by SteelOrbis in the Polish scrap market during the month of May.

According to these data, the average scrap purchase price for delivery to yards in May has reached PLN 1,156/mt (around €272/mt) for W2 scrap (equivalent to HMS I) and PLN 1,230/mt (around €290/mt) for W7 scrap (equivalent to bonus), up by PLN 60/mt (€14/mt) and PLN 74/mt (€17/mt), respectively, compared to April.

One of the main topics discussed in the Polish scrap market has been the collaboration between Glencore, the global miner and trading giant, and the Polish scrap exporter Lebal, a development that could significantly impact Poland’s scrap export segment, particularly toward destinations such as Turkey.

According to feedback collected by SteelOrbis from market sources, different opinions have emerged. “The impact on a global level will be almost zero. Moreover, I’m not convinced this cooperation will last long, as the two parties have very different approaches to the market,” one source commented. “We will have to deal with a new competitor,” another source stated, and in fact they are already considering alternative outlets such as Italy.

Meanwhile, in terms of pricing, the situation remains unchanged at around €290-292/mt DAP for HMS I, as no significant demand support has been observed.

€1 = PLN 4.25