- Steel mills adopt cautious stance amid tariff uncertainties
- UAE shredded being favoured by Pakistan for quick shipment
BigMint’s UAE domestic processed HMS index inched up by AED 14/t ($4/t) w-o-w to AED 1,227/t ($334/t), with extreme heat during April and May – the hottest months on record in the UAE – slowing scrap collection and, consequently, tightening supply and pushing up domestic scrap prices.
Notably, UAE’s ferrous scrap prices continued the steady climb from the previous weeks, which could further be attributed to a recovery in global offers, especially from the US to Turkiye, followed by better inquiries from Pakistan due to quick shipment.
According to market insiders, UAE LMS scrap was priced at AED 860/t ($234/t) DAP Abu Dhabi. Processed/sheared HMS was traded at AED 1,220-1,230/t ($332–335/t), while shredded was assessed at AED 1,260-1,270/t ($343-346/t) DAP Abu Dhabi, with shredded demand remaining weak.
According to a Sharjah-based trader, offers and workable levels were as follows: HMS processed at AED 1,200-1,225/t ($327-333/t), HMS super at AED 1,160-1,170/t ($316-319/t), and shredded at AED 1,275-1,300/t ($347-353/t).
An Abu Dhabi-based mill-side source said that UAE-based mills were in a wait-and-watch mode due to tariff issues. HMS super was traded at around AED 1,180-1,190/t ($321-323/t), HMS processed at AED 1,220-1,230/t ($332-335/t), while shredded was offered high at AED 1,290-1,310/t ($351–357/t) on average.
Export market scenario
The export market showed moderate activity, mainly to Pakistan. UAE-origin shredded can be shipped quickly to Pakistan due to short transit times of 4-5 days. Early in the week, offers for UAE shredded were at $392-394/t CFR Qasim, which dropped to $390/t by the middle of the week. However, with only a few buyers left, most offered material remained unsold amid cautious sentiment.
HMS (80:20) spread
The average spread between HMS 80:20 from Europe and the UAE’s processed HMS 80:20 remained largely stable w-o-w at approximately $19-20/t CFR Nhava Sheva. Prices of imported HMS on the west coast of India stood at $352-354/t CFR, while the UAE’s processed HMS tags were at $333-334/t DAP Abu Dhabi.
Outlook
The UAE scrap market is likely to experience a moderate price rise next week. Continued uncertainty in South Asian scrap markets, combined with the recent upward trend in Turkiye, is expected to keep UAE exporters active in selling overseas.
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