- Limited export interest slows trade activity
- Recovery hinges on demand pick-up or tightening of supplies
BigMint’s UAE domestic processed HMS index inched up by AED 8/tonne (t) ($2/t) w-o-w to AED 1,231/t ($335/t) amid moderate trade activities.
As per sources, the UAE’s domestic scrap market is currently witnessing HMS 80:20 trading between AED 1,150- 1,160/t ($313-316/t), with the higher grade lots securing prices at the upper end of the range.
Sheared HMS and PNS are reportedly available at AED 1,230-1,240/t ($335-338/t), while fabrication scrap is being offered at AED 1,250- 1,260/t ($340-343/t).
Rebar end-cuts are heard at AED 1,300 to 1,310/t ($354-356/t).
Market commentary
Emirates Steel is heard to have booked shredded scrap at AED 1,300 to 1,350/t ($354-368/t) amid slow procurement interest prevailing in the market.
LMS is trading between AED 900- 920/t ($245-251/t) DAP, while processed HMS is at AED 1,230-1232/t ($335-336/t) DAP. Despite limited export momentum, steady local mill demand continues to support these price levels.
“It is still a soft market overall, primarily because exports to India have stalled and demand from Pakistan remains limited,” a UAE-based steel mill commented. “Even though local mills are actively booking material, prices are largely holding steady. In the absence of key regional buyers, there is little momentum for any major upside.”
Export market: UAE-origin scrap offers remain largely stable, with fabrication scrap quoted at $387/t for 500 t, PNS at $367/t, and sheared HMS at $365/t. All offers include 21 free days. Market participants informed that local supply was steady but export interest from key buyers in India and Pakistan was muted. UAE-origin end-cuts for shredded DAP cargoes are offered at $395/t CFR Qasim.
The softening trend in ECAS-certified Far Eastern billet, now offered at $460-465/t CFR Jebel Ali, signals a growing mismatch between buyer sentiment and seller expectations. With bids still anchored at the $450s, buyers seem confident that prices haven’t bottomed out yet.
On the flip side, Qatar’s leading producer is holding firm at $500/t delivered for 3sp billet, despite tightening supply under ECAS norms. But what’s unfolding in the UAE scrap market adds an important layer to this standoff. Local HMS and fabrication scrap prices are already under pressure, and if billet trade slows further, domestic processors may face tighter margins and even weaker realisations.
Outlook: The UAE’s domestic scrap market is likely to remain balanced as the ongoing competition between imported billet and local scrap continues to influence prices. Without a noticeable rise in demand or a significant tightening of supply, price movements may stay subdued, prompting sellers to reconsider their pricing and sales strategies to stay competitive.
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