- Scrap exports slow amid muted buyer inquiries
- Mills show preference for select premium grades
BigMint‘s UAE domestic processed HMS index edged down by AED 3/t ($1/t) w-o-w to AED 1,189/t ($324/t), as mills showed resistance toward mid- and low-grade scrap, except for select material from premium yards. Meanwhile, export activity remains subdued, with limited inquiries and a noticeable decline in outbound scrap flows.
Scrap prices in the UAE remained firm this week, with LMS (light melting scrap) priced at AED 830-840/t ($226–229/t). HMS 80:20 stood at AED 1,150-1,160/t ($313-319/t) whereas HMS processed and PNS were offered at AED 1,180-1,190/t ($321-324/t). Processed PNS fetched AED 1,235-1,240/t ($336-338/t). Fabrication scrap was priced at AED 1,220-1,240/t ($332-338/t), and premium-grade end-cut scrap commanded AED 1,260-1,270/t ($343-346/t).
As per a major mill-side source, HMS 80:20 (processed) was heard at AED 1,180/t in a recent inquiry.
As per a major UAE-based premium yard source, the following ferrous scrap offers and deals were reported:
- HMS processed: Offered at AED 1,220/t; 2,000 t sold at the same level, DAP Abu Dhabi, last weekend.
- Shredded scrap: Offered at AED 1,300/t; 2,000 t confirmed at the same price, DAP Abu Dhabi.
- LMS: Offered in the range of AED 800-820/t; 600 t booked within the range, DAP Abu Dhabi.
Export market scenario
Around 1,000 t of UAE-origin shredded scrap was heard to be booked at $383-385/t CFR Port Qasim; however, no major enquiries were reported from buyers.
The general offer range for UAE-origin shredded remains at $382-385/t CFR Port Qasim amid subdued market interest.
HMS (80:20) spread
The average spread between HMS 80:20 from Europe and the UAE’s processed HMS 80:20 narrowed w-o-w to approximately $7-9/t CFR Nhava Sheva. Prices of imported HMS on the west coast of India stood at $330-332/t CFR, while the UAE’s processed HMS tags were at $323-324/t DAP Abu Dhabi.
UAE: Billet imports gain traction, regional supplies ease
GCC billet supply remains attractive for UAE re-rollers due to ECAS compliance, shorter lead times, and simplified logistics. A major UAE rebar re-roller booked 50,000 t of 150mm 3sp billet from Qatar at $485-490/t CFR Hamriyah Port for July delivery, with 90-day LC terms– the second major Qatari cargo since early June.
Omani and local billet offers stand at $485-490/t delivered, with a recent 5,000-t Oman parcel booked at $490/t to Abu Dhabi. Indonesian billet offers rose to $428-430/t FOB for end-October, with 4sp billet heard at $452-455/t CFR. Iranian billet offers stand at $435-440/t CFR UAE/Oman for prompt delivery.
Outlook:
The UAE’s domestic scrap market is likely to stay range-bound in the near term as mills continue to purchase cautiously amid subdued steel demand and muted export interest. Additionally, steady billet availability from regional suppliers is providing little upward push to scrap prices.
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