- Export offers to Pakistan firm; domestic sales remain slow
- GCC billet market steady; buyers sceptical of hikes in Far East
BigMint’s UAE domestic processed HMS index rose by AED 4/tonne (t) ($1/t) w-o-w to AED 1,201/t ($327/t), supported by firm export offers to Pakistan, though buying interest from domestic steelmakers remained limited.
The UAE domestic scrap market remained largely steady, with mills showing limited buying interest due to support from other raw material purchases. LMS was assessed at AED 840-860/t ($229-234/t), HMS 80:20 at AED 1,160-1,180/t ($316-321/t), and HMS processed at AED 1,195-1,210/t ($325-330/t). PNS traded at AED 1,240-1,260/t ($338-343/t), while PNS processed was heard at AED 1,250-1,280/t ($340-348/t).
Domestic workable levels (early week)
- HMS processed: AED 1,190-1,195/t ($324-325/t)
- HMS 80:20: AED 1,160-1,170/t ($316-318/t)
- LMS: AED 840-850/t ($229-231/t)
- Shredded: AED 1,230-1,240/t ($335-338/t)
Domestic workable levels (late week)
- HMS processed: AED 1,195-1,205/t ($325-328/t)
- HMS super: AED 1,170-1,180/t ($318-321/t)
- LMS: AED 850-860/t ($231-234/t)
- Shredded: AED 1,240-1,250/t ($338-340/t)
Export market scenario
Shredded offers from the UAE remained firm at $395-405/t CFR Qasim, while HMS-PNS mixed cargoes were quoted at $380-385/t CFR. Pure GI bundles were heard at around $378-380/t CFR, and HMS 80:20 stood at $365-370/t CFR.
HMS (80:20) spread
The average spread between HMS 80:20 from Europe and the UAE’s processed HMS 80:20 shrank w-o-w to approximately $5-6/t CFR Nhava Sheva. Prices of imported HMS on the west coast of India stood at $332-333/t CFR, while the UAE’s processed HMS tags were at $326-327/t DAP Abu Dhabi.
Middle East billet market update
Billet prices in the UAE and Oman remained mostly stable this week, despite a $10-20/t rise in Far East offers. Buyers across the Gulf remain cautious, doubting the sustainability of the sudden hike in Chinese and Indonesian offers.
An Omani mill offered 130-mm 3sp billet at $475-480/t ex-works, or around $495-500/t delivered to Abu Dhabi. Induction furnace billet offers within the UAE were heard at $490-495/t delivered, unchanged from previous weeks.
Qatar’s leading supplier is testing the UAE market with a 50,000-t lot at $495-500/t CFR Hamriyah for early September.
A Bahrain-based producer is expected to maintain offers for August shipments at $485-490/t delivered (letter of credit – 60 days), in line with the soft Saudi rebar market.
GCC re-rollers are resisting higher Far East tags, holding back in hopes of a price correction towards $450-460/t CFR seen in early July.
Outlook
UAE domestic scrap prices are expected to stay range-bound, with mills remaining cautious about high-priced purchases, even as stable billet tags and active restocking in nearby markets such as Pakistan offer some support.
Leave a Reply