UAE: BigMint’s scrap index rebounds by $8/t w-o-w on firm export demand

• Steady demand from Pakistan prompts firm offers
• Domestic mills exercise caution on tepid finished steel sales

BigMint’s UAE domestic processed HMS index rebounded by AED 30/tonne (t) ($8/t) w-o-w to AED 1,235/t ($336/t), driven by rising export demand and despite limited purchases from key mills.

Market commentary

The UAE scrap market remained divided. On the domestic side, the country’s largest consumer grappled with high inventories and limited yard space, prompting plans to cut buying prices in the coming days.

Conversely, the export market held firm, supported by steady demand from India and Pakistan.

Recent deals included around 3,000-4,000 t of processed HMS concluded at AED 1,235-1,240/t ($326-329/t, DAP Abu Dhabi) and shredded at AED 1,300-1,325/t ($343-350/t, DAP Abu Dhabi).

As per market insiders, local scrap prices in the UAE were as follows: LMS traded at AED 880-900/t ($240-245/t), while LMS mixed (50:50 with HMS) fetched AED 1,070-1,090/t ($291-297/t). HMS 80:20 was priced at AED 1,190-1,200/t ($324-327/t) and HMS processed at AED 1,230-1,240/t ($335-338/t). PNS was heard in the range of AED 1,240-1,260/t ($338-343/t), fabrication scrap at AED 1,270-1,280/t ($346-349/t), and rebar end-cuttings at AED 1,330-1,340/t ($362-365/t).

Export market update

UAE shredded offers remained firm at $395/t CFR Qasim, with Middle East HMS quoted at $370-375/t CFR and PNS scrap at $380/t CFR. Despite weak domestic steel demand and ongoing monsoon disruptions, export market sentiment was steady, supported by firm overseas buying interest and limited availability of lower-priced material.

HMS (80:20) spread

The average spread between HMS 80:20 from Europe, CFR Nhava Sheva, and the UAE’s processed HMS 80:20, DAP Abu Dhabi, remained minimal, with both prices largely at par. Prices of imported HMS 80:20 CFR Nhava Sheva stood at $334-335/t CFR, while the UAE’s processed HMS tags were at $335-336/t DAP Abu Dhabi.

Outlook

UAE domestic scrap prices are expected to remain stable-to-soft in the near term, with traders expecting a further $3-4/t decline next week amid subdued mill procurement and limited buying interest. Market sentiment points to range-bound movement unless demand improves or export activity strengthens.