Following the sharp, rapid price increase recorded in the Europeanscrapmarket after the start of the Russian invasion of Ukraine, prices in the local Polishscrapmarket have continued to increase in April at a slower pace. However, the sentiment in the local Polishscrapmarket has changed in the light of recent developments. Turkey has been out of the internationalscrapmarket for a long time and the first deal done by Turkish mills has indicated a significant price fall. This is expected to have a negative impact on localscrapquotations in May.
During the past month, prices in the local Polish market for HMS Iscraphave moved up by €20/mt to the range of €570/mt DAP, from levels of €550/mt DAP. Higher grades like E6scrapand rails are currently at around $580s/mt DAP.
The local Polishscrapmarket is quiet for now, though expectations are negative. According to a trader inPoland,scrapprices are expected to move down by at least €60-70/mt in the coming month and the total reduction in prices may reach €100/mt over two months. “Steel demand is not strong inPolandright now. Construction projects have stopped amid high costs and the automotive sector has also come to a halt due to disruptions in the supply chain,” a source commented. Russia is a big export market for Polish steelmakers, and is now considered not workable due to sanctions. SteelOrbis understands that localscrapflow inPolandhas been and still is strong. “There is too much availablescrapinPolandbecause Turkey has been out of the market for a long time,” SteelOrbis source reported.