According to market players, the domestic scrap market in Poland has remained almost stable in the past week, while the export market has shown some declines compared to the last levels recorded, when Polish export prices had remained firm while international markets were moving down.
According to the latest data published by IPHGZ, the Polish Metallurgical Chamber of Industry and Commerce, the average scrap purchase price for delivery to yards in June has reached PLN 1,123/mt (approx. €262/mt) for W2 scrap (equivalent to HMS I) and PLN 1,165/mt (approx. €272/mt) for W7 scrap (equivalent to bonus), respectively down by PLN 33/mt (€8/mt) and PLN 65/mt (€15/mt) compared to May.
It is appropriate to consider the slight variation in the euro-zloty exchange rate in this trend, which has gone from 4.25 to 4.29. While it does not represent a significant change itself, the slight weakening of the Polish currency signals a possible slowdown in the country's economy.
In fact, a source has reported that he expects further declines in scrap prices in July, also because of the summer holidays approaching which will decrease the productivity of mills and manufacturing companies.
Meanwhile, some reductions have also been observed in Polish scrap export prices, with the fall in import prices in Turkey eventually causing the purchase prices of export yards in Poland to decline. The latter have in fact gone from the long-term stability of around €292-295/mt DAP for HMS I to about €280/mt DAP for the same grade, a price that stands in line with other countries in northern Europe.
€1 = PLN 4.29
