According to what has emerged in the Polish scrap market this week, the first negotiations concerning scrap purchases by local mills suggest increases by €10-15/mt.
According to sources, scrap collection in Poland continues to be very difficult due to the harsh winter conditions, which are only not slowing down activity in the construction sector, but also activity in the industrial sector. The temperatures well below zero prevent the correct functioning of industrial machinery, thus causing a reduction in new scrap generation.
Although no official price levels are available yet, it is believed that bonus scrap in Poland in February is not available below €300/mt delivered, which would represent an increase of about €10-15/mt compared to the prices paid by mills in the previous month.
Apparently, two of the main Polish producers are very active in scrap purchases, and a third is rather inclined rise its purchase prices by €12-15/mt.
A source at a Polish mill commented, "Bad weather is causing delays in deliveries, and, on top of that, the Ukrainian export ban has caused us a shortage of about 15,000 mt in supplies."
No changes have been reported on the export side, where prices for HMS I have remained unchanged at €250/mt DAP. Although some sources believe that the level mentioned is too low, no diverse official confirmations have arrived. In the meantime, SteelOrbis will continue to monitor the market while waiting for further updates.
