- Saudi flat steel prices drop as demand weakens
- Market restocking likely to happen after Ramadan
The UAE’s domestic ferrous scrap index edged up by AED 4/t ($1/t) w-o-w, with prices rising early in the week before a mid-week dip. Trades were reported at AED 1,220/t, but market activity slowed with the onset of Ramadan.
BigMint‘s benchmark assessment for processed HMS 80:20 was at AED 1,207/t ($329/t), reflecting an AED 4/t ($1/t) increase compared to last week’s AED 1,203/t ($328/t) DAP Abu Dhabi.
According to BigMint’s week 10 market survey, around 4,000-4,500 t of processed HMS 80:20 and shredded were traded. HMS was traded at AED 1,210-1,220/t ($329-332/t) and shredded at AED 1,280-1,290/t ($348-351/t) DAP Abu Dhabi.
A major Sharjah-based scrap trader noted that the market remains slow, with moderate inquiries from major mills. Processed HMS is at AED 1,200-1,210/t ($327-329/t), while shredded is at AED 1,250-1,260/t ($340-343/t) DAP Abu Dhabi. He added that ESI has not shared its shredded inquiry levels this week, but they are expected to be around AED 1,270-1,280/t ($346-349/t).
HMS (80:20) spread
The average spread between HMS 80:20 from Europe and UAE local processed HMS 80:20 increased to approximately $25-26/t CFR Nhava Sheva from $18-10/t a week ago. Imported HMS prices for CFR west coast of India stood at $355-360/t, while UAE processed HMS prices were at $328-329/t DAP Abu Dhabi.
Export market
A UAE-based scrap yard owner noted that Pakistan’s scrap market remains sluggish, with HMS heard at $358/t and shredded at around $380/t from Europe. UAE-origin shredded is being indicated at $385/t but remains negotiable down to $380/t. Another exporter highlighted that Pakistani buyers prefer UAE materials over EU supplies due to faster transit, though demand remains weak for high-priced inquiries above $380-385/t. At Port Qasim, shredded buyers are at $380/t, while sellers are holding firm at $385/t.
A UAE-based scrap seller noted that buying remains quiet, with slow market activity due to Ramadan. Payment and liquidity issues persist, keeping demand subdued. No major changes are expected in the near term. UAE shredded is at $390/t, Fabrication at $380/t, and HMS at $360/t.
UAE rebar prices continued to decline amid a Ramadan slowdown. Emirates Steel held its rebar price at AED 2,650-2,655/t ($720-722/t) ex-works, unchanged since January.
Billet import offers remained stable at $455-490/t CFR UAE. Domestically, Emsteel sold rebar at AED 2,400-2,440/t ($653-664/t) exw, while re-rollers lowered offers to AED 2,250-2,280/t ($613-621/t) exw.
Oman-origin rebar was offered at $615-620/t CPT, with market estimates at $625-630/t CPT, though no major deals were heard.
The Saudi flat steel market is slowing due to Ramadan, impacting both domestic and import prices. Local HRC (3-6 mm) is at SAR 2,400/t ($640/t) delivered, down $20/t. CRC (1 mm) is at SAR 2,625/t ($700/t), while HDG (1 mm) is at SAR 3,469/t ($925/t) delivered.
Chinese HRC imports rose $5-10/t to $510-525/t CFR, while Japanese and Taiwanese offers remain at $535-540/t CFR. Demand is weak, with reduced business hours from 10 AM to 2-4 PM.
Outlook
The UAE’s domestic scrap market is expected to remain stable during Ramadan, with limited buying activity and subdued exports as suppliers hold back offers. However, as buyers return for fresh bookings post-Ramadan, prices could see an uptick.
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