BigMint’s UAE scrap index down $4/t w-o-w as selective buying weighs on trade

• Emirates Steel lifts rebar offers after 6 months
• Selective scrap bookings heard from mills

BigMint’s UAE domestic processed HMS index fell by AED 13/tonne (t) ($4/t) w-o-w to AED 1,222/t ($333/t) amid limited purchases by key mills.

Market commentary

“We expect a drop in HMS processed and shredded scrap prices this week, with HMS around AED 1,220/t, shredded at AED 1,300/t, and PNS in the range of AED 1,270-1,280/t. No major deals have been concluded from our side, as we are holding back purchases,” said an Abu Dhabi-based mill source.

“We booked HMS unprocessed at AED 1,150/t for 2,000 t, Super HMS at AED 1,175/t for 500 t, PNS at AED 1,200-1,225/t for 1,000 t, PNS processed at AED 1,250-1,270/t for 1,000 t, and end cuts at AED 1,285-1,310/t for 500 t,” said another UAE-based mill representative.

As per market insiders, local scrap prices in the UAE on a delivered basis stood as follows:

• HMS 80:20: AED 1,1600-1,190/t ($316-324/t)
• HMS Sheared (processed): AED 1,220-1,225/t ($332-333/t)
• PNS: AED 1,240-1,250/t ($338-340/t)
• PNS processed: AED 1,250-1,270/t ($340-346/t)
• LMS: AED 860-880/t ($234-240/t)

Emirates Steel, with an annual rebar output of about 2 mnt, has raised its offers for the same by AED 110/t ($30/t) for Sep’25 deliveries after keeping them stable for six months. The company set prices at $705/t (AED 2,590/t) exw-Abu Dhabi.

As per market participants, Emirates Steel’s recent revision in rebar offers has set the tone for the UAE market, with expectations that other domestic mills will follow suit in the coming days.

In Saudi Arabia, while many expected Hadeed to announce an increase in September rebar prices, the mill opted for a rollover, surprising some buyers. However, industry insiders suggest that other mills in the Kingdom could still implement hikes of around SAR 30-40/t in September, driven by firming raw material costs and to maintain parity with regional pricing trends.

Export market update

Market participants in Pakistan noted a cautious tone, with UAE suppliers refraining from aggressive offers. Shredded scrap CFR Qasim faced resistance as buyers held back, anticipating price corrections. Expectations of softer levels were tied to heavy rains disrupting activity and further weighing on near-term demand.

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 $333-334/t CFR, while the UAE’s processed HMS tags were at $333/t DAP Abu Dhabi.

Outlook

UAE scrap may stay under pressure as mills buy cautiously, but firmer finished steel offers could lend some support. Export demand from Pakistan remains weak, though September could bring a sentiment lift if regional demand revives.