- UAE mills file petition over illegal scrap exports to India
- Saudi Hadeed cuts rebar tags on slow finished demand
The UAE’s domestic ferrous scrap index declined by AED 17/tonne (t) ($5/t) w-o-w, as market activity slowed with the onset of the Ramadan season, a period typically marked by sluggish demand. Meanwhile, UAE’s benchmark mill, EMSTEEL, maintained rebar prices for March 2025 deliveries.
Another major update is that despite UAE’s scrap export restrictions, shipments to India persist. EMSTEEL, Arabian Gulf Steel, and Shattaf Steel petitioned the Bombay High Court, citing illegal imports via false declarations and smuggling. Meanwhile, UAE-based mills are seeking stricter enforcement of the Emirates Conformity Assessment Scheme (ECAS), which is aimed at boosting domestic billet production. This policy, which makes billet origin verification crucial, will help ensure that certified billets are used and that scrap supply remains stable.
BigMint‘s benchmark assessment for processed HMS (80:20) was at AED 1,203/t ($327/t), reflecting an AED 17/t ($5/t) decrease compared to last week’s AED 1,220/t ($332/t) DAP Abu Dhabi.
Scrap market insights
Processed HMS offers were heard in the range of AED 1,210-1,215/t ($329-330/t) DAP Abu Dhabi, while bids were lower at AED 1,190-1,200/t ($324-326/t) due to slow market movement. Shredded offers stood at AED 1,290-1,300/t ($351-353/t), with bids at AED 1,250-1,260/t ($340-343/t), though inquiries for shredded were limited.
A trader informed, “With the start of the Ramadan season, market activity naturally slows due to adjusted working hours and a reduced labour force. Additionally, pre-Ramadan stocking of raw materials has led to sluggish buying since the beginning of the week.”
Meanwhile, unprocessed HMS was assessed at AED 1,160-1,170/t ($315-318/t), fabrication scrap ranged within AED 1,270-1,290/t ($345-355/t), and LMS was heard at AED 1,000-1,030/t ($272-280/t), DAP Abu Dhabi.
A mill source noted, “Emirates Steel Industries (ESI) quoted shredded at AED 1,300-1,310/t despite the slowdown in the domestic market. Additionally, Arabian Gulf Steel Industries (AGSI) has been less aggressive in scrap procurement, with expectations that larger mills will enter the market post-Ramadan.”
Export market
This week, the export market also witnessed limited activity ahead of Ramadan.
Pakistan’s imported scrap market remained sluggish, as weak liquidity and subdued steel demand kept buyers cautious ahead of Ramadan. However, buyers showed interest in UAE-origin scrap due to its shorter three-day transit time, with deals heard at $380-382/t CFR Qasim.
Bangladesh’s imported scrap market was also slow, with Ramadan approaching, and mills showed little interest in fresh bookings.
HMS (80:20) spread
The average spread between HMS (80:20) from Europe and UAE local processed HMS (80:20) decreased to approximately $18-20/t CFR Nhava Sheva from $15-16/t a week ago. Imported HMS prices for CFR west coast of India stood at $345-347/t, while UAE processed HMS prices were at $327-339/t DAP Abu Dhabi.
UAE steel market
Rebar: EMSTEEL maintained rebar prices at AED 2,652/t ($722/t) for March 2025 deliveries, expecting lower demand, as construction activity slows during Ramadan. Regional prices stood at $726/t (AED 2,668/t) for Dubai, Sharjah, and the Northern Emirates and $724/t (AED 2,660/t) for Abu Dhabi. Prices exclude 5% VAT. Additionally, other UAE-based long steel producers followed suit, opting to maintain official tags in line with EMSTEEL’s settlement values.
HRC: Indian hot-rolled coil (HRC) export offers to the Middle East remained largely stable w-o-w at $530/t CFR UAE, despite sluggish trade activities. Similarly, Chinese HRC export offers to the Middle East remained steady w-o-w, with offers hovering at around $495/t CFR UAE. Trading activity was slow ahead of Ramadan, with buyers taking a cautious approach.
Other updates
UAE’s largest steel producer, EMSTEEL, has launched an AED 625 million ($170.2 million) Asset Enhancement Programme to boost production and introduce advanced steel solutions. Phase 1 includes rolling mill upgrades and high-strength rebar production to support decarbonisation. Phase 2 will involve adding a 500,000-t wire rod line and upgrading cooling conveyors, enabling high-value wire rods and high-tensile rebar production.
Saudi market
Hadeed, Saudi Arabia’s benchmark mill, has announced its March pricing strategy, reducing official offers ahead of Ramadan. The company reduced March prices of rolling longs by SAR 50/t ($13/t) compared to February. Rebars were priced at SAR 2,350/t ($627/t) delivered, while wire rods stood at SAR 2,370/t ($632/t) for 5.5-6 mm and SAR 2,320/t ($619/t) for 6.5-14 mm delivered.
Additionally, the domestic scrap market experienced a raw material shortage. However, despite the supply constraints, Saudi Arabia’s benchmark mill reduced its scrap purchasing prices due to sluggish demand for finished products.
Outlook
The UAE’s domestic scrap market is expected to remain stable during Ramadan due to limited buying activity. Similarly, exports may stay subdued as suppliers hold back offers. However, prices could see an uptick post-Ramadan as market participants return for fresh bookings.
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