But buyers shared mixed expectations about the future market development.
Rebar
Polish mills were heard offering March production rebar at 2,700 zloty ($677) per tonne CPT during the assessment week. This is also largely the level at which the material was offered in the previous week.
Industry sources told Fastmarkets that mills were quite firm on their offers, willing to grant some discounts by just 20-30 zloty per tonne.
“With these offer levels, local mills are trying to compensate for the high scrap and energy prices in the domestic market,” a distributor source told Fastmarkets.
According to industry sources, the Polish market for domestic scrap has become more active recently with some rebar producers needing to replenish their stocks. Besides, the steel slab and plate producer Huta Czestochowa has resumed operations recently and has also started to purchase scrap more actively.
This increased the demand in the domestic market and pushed the local scrap prices higher by 90-100 zloty per tonne compared to the previous month.
Fastmarkets’ sources estimated the workable market level for rebar at 2,650-2,670 zloty per tonne CPT, with the lower end of the price range considered achievable for bigger volumes.
As a result, Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar), domestic, cpt Poland, was 2,650-2,670 zloty per tonne on Friday, up by 20-30 zloty per tonne from 2,620-2,650 zloty per tonne on February 14.
But industry sources shared mixed opinions on how the market will develop.
“It seems that the sentiment has improved, and most market participants expect that rebar prices will be stable to slightly higher in the short run,” the distributor source told Fastmarkets.
Prices were also supported by slightly better demand.
“Even in Germany, there is not such a big increase in rebar prices,” the source added.
A producer source confirmed that demand was “not low” and “much better now” than in January.
But a second distributor source was more pessimistic.
“I think the prices will fall again by mid-March. The demand will improve more significantly in May/June, when [more] money from EU funds [are expected to enter the Polish economy],” the second distributor said.
In terms of imports, German mills were heard offering rebar to Poland at €630 ($659) per tonne delivered.
Wire rod
Prices for Polish low-carbon drawing quality wire rod also increased during the assessment week, supported by bullish sentiment among producers.
Polish mills were officially offering the material at 2,900 zloty per tonne CPT.
Fastmarkets’ sources estimated the workable market level at 2,800-2,850 zloty per tonne CPT.
One buyer source told Fastmarkets that for small volumes Polish mills would even insist on 2,900 zloty per tonne CPT.
Fastmarkets’ price assessment for steel wire rod (drawing quality), domestic, delivered Poland, was 2,800-2,850 zloty per tonne on Friday, up by 30-50 zloty per tonne from 2,750-2,820 zloty per tonne on February 14.
Regarding imports, offers for mesh-grade wire rod from Ukraine to Poland were heard at €620 per tonne delivered Poland.
Offers of low-carbon drawing quality wire rod from Italy to Poland were heard at €660 per tonne delivered, but according to sources a discount of €10 per tonne could be achieved in negotiations.
The Czech Republic was heard offering low-carbon drawing quality wire rod to Poland at €660-680 per tonne delivered.
