UAE: Domestic scrap index edges up $1/t w-o-w amid firm supplier offers

• Suppliers less interested due to recent price drops
• Local demand weakens, mill-side inquiries down

The UAE’s domestic scrap prices witnessed a range-bound trend w-o-w amid continued slow inquiries from mills on weakening local demand. BigMint’s domestic HMS processed scrap index inched up by AED 3/t ($1/t) w-o-w to AED 1,203/t ($328/t), primarily as suppliers kept offers firm.

As per BigMint’s weekly survey, most suppliers were not interested in engaging in trades after the continuous price drop in the domestic market. Last week, a decline of around AED 15-20/t ($4-5/t) was observed in major mill-side inquiries, but scrap traders and processors maintained their offers in response.

This week, scrap tags on a DAP Abu Dhabi basis were at AED 1,200-1,205/t ($327-328/t) for HMS 80:20 processed, AED 1,160-1,170/t ($316-318/t) for HMS 80:20, AED 1,100-1,110/t ($299-302/t) for pure LMS, and AED 870-890/t ($236-242/t) for mixed materials.

Market commentary

A Sharjah-based scrap supplier stated, “The market is currently facing uncertainties due to global dynamics. Some traders are showing lower interest at the current prices quoted.”

An Abu Dhabi-based scrap buyer said, “The market will stay at these levels, as the current workable values are AED 1,190-1,200/t ($324-327/t) for HMS and AED 1,240-1,250/t ($337-340/t DAP) for shredded.”

Export market

The export market saw moderate activity, although overall momentum was sluggish. Recently, a deal for 250 t of Middle East HMS 1 was concluded at $375/t CFR Mundra. Offers for UAE HMS hovered around $360-362/t, while HMS premium was quoted at $370-378/t. Last week, a UAE shredded cargo of 500 t was sold at $385/t. Although some buyers still bid below $375-380/t, securing deals at those levels proved difficult. UAE-origin scrap remained unviable for most buyers at $385-390/t CFR Qasim, with their expectations still anchored around $370-375/t.

HMS (80:20) spread

The average spread between HMS 80:20 from Europe and the UAE’s processed HMS 80:20 inched up by $1/t w-o-w to approximately $20-22/t CFR Nhava Sheva. Prices of imported HMS on the west coast of India stood at $348-350/t CFR, while the UAE’s processed HMS tags were at $327-328/t DAP Abu Dhabi.

Outlook

The UAE market is expected to remain stable in the short term, with limited movement in scrap purchase prices from major mills due to weak demand. A cautious export market is likely to support the current domestic price conditions.