- Export market remains slow, minor bookings heard
- Market stability expected with Emirates’ rebar price rollover
The UAE’s domestic scrap prices witnessed a downtrend w-o-w amid limited inquiries from mills on weakening local demand. BigMint’s domestic HMS processed scrap index inched down by AED 14/t ($4/t) w-o-w to AED 1,200/t ($327/t).
As per industry insiders, LMS is quoted at AED 1,090-1,100/t ($296-300/t), while mixed material of the same grade stands at AED 880-900/t ($239-245/t), reflecting a drop of AED 20-30/t w-o-w. Similarly, HMS 80:20 and processed HMS are priced at AED 1,150/t ($313/t) and AED 1,200/t ($327/t) respectively, down by AED 12-15/t w-o-w. Fabrication scrap offers are at AED 1,210-1,230/t ($329-335/t), down AED 20-30/t w-o-w.
Market comments
A Sharjah-based scrap supplier commented, “We are currently experiencing a slight material shortage in the market, but we expect it to be resolved soon without significant impact on prices. One of our clients has been stocking up due to this. Under normal conditions, DAP levels are around AED 1,200-1,210/t ($327-329/t), with freight costs of AED 30-35/t ($8-10/t) from Sharjah. We also have a pending order with one of the major scrap buyers and are in negotiations. Some other mills are also waiting for material.”
An Abu Dhabi-based scrap buyer said, “The market is expected to see some stability at these levels as Emirates Steel rolls over its rebar sales price for May. Processed HMS is priced around AED 1,190-1,200/t ($324-327/t), while normal HMS is at AED 1,160-1,175/t ($316-319/t), and PNS is at AED 1,210-1,220/t ($329-331/t) DAP. A major mill recently purchased approximately 5,000 t of processed HMS at AED 1,200/t ($327/t). Current workable levels are AED 1,200/t ($327/t) for HMS and AED 1,250-1,260/t ($340-343/t DAP) for shredded.”
Export market
The export market has witnessed some activity, although the overall trend remains slow. 500 t of fabrication scrap was booked at $386/t CFR Qasim from the UAE. Additionally, 20 containers of HMS 80:20 were purchased from the UAE at $365/t CFR Nhava Sheva.
Another 500 t of fabrication scrap from the UAE was booked at $384/t CFR Qasim, and 1,000 t of shredded at $389/t CFR Qasim.
HMS (80:20) spread
The average spread between HMS 80:20 from Europe and the UAE’s processed HMS 80:20 declined by $1-2/t w-o-w to approximately $22-23/t CFR Nhava Sheva. Prices of imported HMS on the west coast of India stood at $350-352/t CFR, while the UAE’s processed HMS prices were at $325-327/t DAP Abu Dhabi.
CARES has suspended an international steel manufacturer under the Emirates Conformity Assessment Scheme (ECAS) due to falsified information on billets accessed from non-approved sources. The company misled buyers with altered documentation and discrepancies found during inspection. The suspension has raised concerns in the UAE steel industry, with calls for the company’s name to be disclosed. ECAS, implemented in 2024, has faced challenges, including issues with Iranian mills and shipments from Dexin Steel Indonesia.
Outlook
The UAE scrap market is seeing a slight downturn, with domestic prices falling due to weak demand and limited inquiries. However, the market may stabilise as Emirates Steel rolls over rebar prices for May. Market participants are facing a short-term shortage but with sufficient inventory at hand, stability is expected.
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