- Wire rod demand in the UAE lifts prices by $10/t
- Saudi’s Hadeed reduces scrap purchase prices by up to $7/t
In the UAE, domestic scrap prices dropped w-o-w as exports slowed due to flooding in Pakistan. Despite marginally higher offers by AED 10-12/t ($3/t), mills remained cautious. A major mill source indicated procurement at AED 850/t for LMS, AED 1,140/t for HMS, AED 1,200/t for HMS processed, and AED 1,275/t for shredded, with purchases limited to immediate requirements.
BigMint‘s UAE domestic processed HMS index rose by AED 11/tonne (t) ($3/t) w-o-w to AED 1,221/t ($332/t)
Market participants in the UAE noted that sentiments remain slow, with ferrous scrap demand showing little strength. The high dollar is adding further pressure, prompting traders to cut back on volumes.
Offer levels (start of week)
- HMS 80:20: AED 1,150-1,180/t ($313-321/t)
- HMS processed/sheared: AED 1,200-1,210/t ($327-329/t)
- PNS: AED 1,220-1,230/t ($332-335/t)
- PNS processed: AED 1,230-1,240/t ($335-338/t)
- End-cut: AED 1,290-1,310/t ($351-357/t)
Towards weekend
- HMS 80:20: AED 1,170-1,190/t ($318-324/t)
- HMS processed/sheared: AED 1,210-1,220/t ($329-332/t)
- PNS: AED 1,230-1,240/t ($335-338/t)
- PNS processed: AED 1,240-1,250/t ($338-340/t)
- End-cut: AED 1,310-1,320/t ($357-359/t)
Middle East export market: HMS-PNS offers steady at $365-370/t CFR amid muted buying interest, as flooding in Pakistan disrupts demand.
HMS (80:20) spread
The price spread between European HMS 80:20 CFR Nhava Sheva and UAE processed HMS 80:20 DAP Abu Dhabi remained negligible, with both markets aligned at $332/t. Imported HMS 80:20 at Nhava Sheva was assessed at $332/t CFR, while UAE-processed HMS was quoted at $332-333/t DAP Abu Dhabi.
UAE’s wire rod prices strengthened by $10/t on firmer demand, with benchmark offers at $570-580/t exw. Consumption rose to nearly 35,000 t/month, driven largely by villa projects in Abu Dhabi. Regional demand remains diverse, with Omani suppliers targeting $600/t CPT under strict LC terms, while Chinese origin niche grades ($530-540/t CFR) continue to pressure regional mills.
Other market updates
Saudi Arabia: Hadeed cut scrap buying prices by SAR 13-25/t ($3.5-6.7/t) for September, with Premium HMS at SAR 1,545/t ($412/t) and shredded at SAR 1,540/t ($410/t). Wire rod prices stayed flat as demand remained subdued, with benchmark offers at SAR 2,320–2,370/t ($619–632/t) delivered. Imports from Egypt ($565/t CFR Jeddah) are cheaper but attract limited interest amid weak construction activity.
Outlook
The UAE scrap market is expected to trend downward in terms of price amid weak exports and cautious domestic buying.
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