This week, scrap prices in the UAE witnessed a mere $1/t (AED 5/t) drop overall, with a relatively slow market movement seen because of the ongoing Ramadan week and upcoming Eid festival.
This slowdown is due to the traditional dip in business activity during the holy month of Ramadan and the slow steel market. Despite this, rebar prices were unchanged. Mills continued their moderate purchasing as suppliers quoted firm offers because of a supply shortage due to slow collection pace.
As per a few market sources, the UAE’s domestic scrap market is witnessing a period of shortage due to the upcoming Eid holidays and reduced working hours.
BigMint’s bi-weekly assessment showed an AED 5/t ($1/t) drop for HMS (80:20) processed scrap, maintaining a price range of AED 1,245-1250/t ($339-340/t) DAP.
However, a couple of deals in the market remained in the range of AED 1,250-1,270/t ($340-346/t) for HMS (80:20) processed on a DAP basis. Bids were heard at around AED 1,220-1,230/t ($332-335/t), followed by declining scrap inventories.
Market survey: According to BigMint’s week 14 market survey, shredded scrap bids and workable prices ranged from AED 1,360-1,375/t ($370-374/t), while HMS (80:20) processed was offered at AED 1,255-1,270/t ($342-346/t) DAP Abu Dhabi. Abu Dhabi-based mills have quoted multiple bids for shredded at AED 1,330-1,340/t ($362-365/t).
HMS (80:20) spread: The average spread between the CFR Nhava Sheva HMS (80:20) and UAE local HMS (80:20) processed scrap increased to $55-56/t, following the slight decline in domestic scrap prices. Imported HMS (80:20) prices, CFR west coast India, remained firm at $395-398/t, while UAE HMS (80:20) processed scrap prices remained at $339-341/t DAP.
In the scrap export market, indicatives for Bangladesh in HMS 1 and PNS mix were mainly at $422-425/t CFR Chattogram, followed by PNS scrap at $420-422/t CFR Qasim basis. Additionally, 300 t of PNS from the UAE was sold at $415/t on a CFR Qasim basis, followed by a 250 t parcel of HMS from the UAE, which was sold at $392/t on CFR Mundra basis.
As per a major trading house, exporters are now less active amid weak demand from Pakistan and Bangladesh. Local steel mills might see more scrap due to better demand in a few days.
Outlook: Expectations are high for a rebound in domestic scrap prices in the UAE following the Eid holidays. Major mills might gear up to replenish their inventory, ensuring a sustained level of production in the weeks ahead.
