- Major steelmakers continue regular procurement despite limited spot trades
- Resilient construction activity supports steel demand, though developers turn cautious
The UAE ferrous scrap market remained broadly stable during the week ended 7 August, supported by steady domestic demand from major steelmakers despite selective buying activity and limited spot transactions.
According to BigMint’s assessment, processed HMS (80:20) was assessed at AED 975/t ($265/t) DAP Abu Dhabi, stable w-o-w, while market offers were heard at AED 980-1,000/t ($267-272/t) DAP Abu Dhabi. Market participants noted that sellers largely maintained asking prices despite the absence of significant fresh trades, reflecting balanced supply-demand fundamentals.
Buying activity remained largely requirement-based, with major consumers such as AGSI and Emirates Steel continuing routine procurement programmes.
Export activity remained muted during the week, although a few Middle East-origin offers were heard into Pakistan, with both bundle scrap and sheared HMS quoted at $408/t CFR Qasim. The offers reflected stable export parity, but regional buying interest remained largely requirement-based, limiting fresh transactions.
Construction activity in the UAE continued to support domestic steel demand during the review period. The residential property market remained resilient in Q2 2026, backed by government affordability measures and a strong project pipeline, with around 40,000 residential units scheduled for delivery in H2. However, developers have become more cautious in launching new projects as rising housing supply, moderating demand and ongoing regional geopolitical uncertainty shift the focus towards completing existing developments rather than initiating new ones.
A regional steel supplier commented: “The market remains fundamentally strong, and existing projects continue to support steel consumption. However, everyone is watching what happens next. The longer geopolitical uncertainty persists, the more cautious developers are likely to become about launching new projects, which could eventually affect steel demand.”
Meanwhile, EMSTEEL reported stronger H1 2026 financial results despite regional logistics disruptions. Revenue increased 6% y-o-y to AED 4.6 billion, while operating profit more than doubled on improved operational efficiency and resilient domestic demand. The company also benefited from lower steel imports into the UAE, enabling it to increase its domestic market share across several finished steel product segments despite lower export volumes.
Outlook
BigMint expects the UAE ferrous scrap market to remain broadly stable in the coming week. Regular procurement by major domestic steelmakers is likely to keep processed scrap prices supported, while selective buying and limited spot trading may restrict significant price movement. Market participants will continue to monitor regional logistics conditions and construction activity, although current demand fundamentals suggest prices are likely to remain near prevailing levels.
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