- Local supply tightens, pushing up prices
- Exports to Pakistan pick up, offer support
BigMint’s UAE domestic processed HMS index rose by AED 20/tonne (t) ($5/t) w-o-w to AED 1,221/t ($332/t), supported by improved local demand and steady export interest. Slower scrap collection due to extreme heat also added upward pressure due to tighter local supply.
Buyers showed steady interest at prevailing domestic ferrous scrap prices. Particularly, deals were heard from premium yards.
Domestic workable levels (early week)
- HMS processed: AED 1,200-1,205/t ($327-328/t)
- HMS 80:20: AED 1,170-1,180/t ($318-321/t)
- LMS: AED 850-860/t ($231-234/t)
- Shredded: AED 1,230-1,240/t ($335-338/t)
Domestic workable levels (late week)
- HMS processed: AED 1,220-1,225/t ($332-333/t)
- HMS super: AED 1,180-1,195/t ($321-325/t)
- LMS: AED 860-875/t ($234-238/t)
- Shredded: AED 1,270-1,290/t ($346-351/t)
Market commentary
A Sharjah-based scrap market insider shared, “Processed HMS is currently at AED 1,225/t ($333/t), but material movement is quite slow –largely due to the extreme heat. Shredded is being offered at AED 1,320-1,330/t ($359-362/t) from premium yards, while other yards are quoting around AED 1,280-1,290/t ($348-351/t).”
In terms of concluded deals, 5,000 t of processed HMS were sold at AED 1,225/t ($333/t) on a DAP Abu Dhabi basis. Additionally, 1,000 t of shredded changed hands at AED 1,340/t ($365/t), also delivered to Abu Dhabi.
A domestic trader and yard owner stated, “Local demand in the UAE is currently strong, and we are also seeing good interest from the export market — especially Pakistan. Containers for HMS and PNS are going for around AED 1,250/t ($340/t), with PNS processed heard as high as AED 1,260/t ($343/t). Shredded has reached AED 1,300/t ($354/t), but many expect prices to soften in the coming weeks.”
Export market
A UAE-based exporter shared, “We recently sold around 250-500 t of shredded to Pakistan at $394-395/t CFR Qasim. The Pakistani market has shown some signs of recovery after the budget announcement. Although mills are not yet running at full capacity, the easing of scrap import restrictions and higher duties on finished steel — particularly from GCC countries — has improved sentiment. HMS offers to Pakistan are currently around $355/t CFR Qasim.”
HMS (80:20) spread
The average spread between HMS 80:20 from Europe and the UAE’s processed HMS 80:20 stood at approximately $5-6/t CFR Nhava Sheva. Prices of imported HMS on the west coast of India stood at $338-340/t CFR, while the UAE’s processed HMS tags were at $332-333/t DAP Abu Dhabi.
EMsteel rolls out import control measure to shield UAE steel market
On 25 July, UAE-based steelmaker EMsteel introduced a Temporary Import Displacement Discount (TIDD) to curb rising imports — particularly from China — that are pressuring domestic prices and threatening local mills.
The TIDD initiative offers incentives to buyers who prioritise UAE-made steel sections, with discount rates tied to their past import volumes. Emsteel framed the move as both an economic and national priority to strengthen domestic manufacturing.
As per market insiders, Iran has been supplying around 100,000 t of billets to Gulf buyers. However, certification issues in the UAE have already eroded Iran’s regional billet market share, with its impact now largely factored in.
Outlook
UAE domestic scrap prices are likely to remain slightly down or range-bound as mills stay cautious about high-priced purchases. While nearby markets such as Pakistan may provide some support, many expect a price correction in the coming weeks as mills might adjust to AED 1,200-1,210/t DAP levels for processed HMS.
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