- Asian billet discounts remain largely inaccessible to UAE buyers
- Weak downstream demand caps further scrap price gains
UAE’s domestic scrap market remained selective w-o-w, with limited inquiries from mills. Processed HMS prices edged higher as tight scrap availability and persistent billet shortages supported replacement costs. BigMint assessed processed HMS at AED 982/t ($267/t) DAP Abu Dhabi, up AED 7/t ($2/t) w-o-w.
Mill purchase levels were heard at around AED 980-990/t ($267-270/t), while trader offers were around AED 1,000-1,020/t ($270-278/t) DAP Abu Dhabi. The AED 10-40/t bid-offer gap limited transactions, although some suppliers indicated they had little or no material available for sale.
Market updates
As per a Dubai-based trader source, processed HMS offers were reported at around AED 1,010-1,020/t ($273-275/t) DAP mills, against mill buying levels of AED 980-990/t ($265-268/t). Market participants said the previous indication was around AED 900-1,000/t ($243-270/t), depending on material quality, indicating firmer replacement costs.
Scrap availability remained tight, with suppliers reporting limited material for sale. However, mills remained reluctant to chase higher offers amid subdued downstream steel demand. The resulting bid-offer gap kept the market firm but largely inactive, with fresh transactions limited.
Steel market
Billet shortages remained a major constraint for UAE re-rollers. One producer was reportedly operating at below 50% capacity, with four billet vessels en route but none having arrived as of 12-13 August. The producer was therefore forced to source billet from Saudi Arabia by land, although land transport could not provide sufficient daily volume.
UAE billet prices remained firm at around $640-650/t CPT, despite much lower Asian origin prices of around $455-456/t FOB for Indonesian billet and $430-435/t FOB for Chinese 3SP billet. The substantial price differential has become less relevant as shipping disruptions and delivery uncertainty prevent buyers from reliably securing cheaper Asian material.
The UAE HRC market also remained subdued. Indian HRC was offered at around $520-530/t FOB Mumbai, while Chinese HRC was around $485-495/t FOB China. Larger buyers continued to secure material on an FOB basis, with one Indian producer reportedly selling around 200,000 t since April, while smaller downstream consumers remained cautious because of freight and delivery uncertainty.
EMSTEEL supplied locally manufactured rebar to several stations under the Etihad Rail passenger project, along with more than 80,000 t of cement for concrete works across Al Dhafra and Abu Dhabi. The project adds to EMSTEEL’s involvement in major UAE infrastructure developments, including Barakah Nuclear Energy Plant, Dubai Metro and key cultural projects. The company operates an integrated steelmaking complex with 4.2 mnt/year of DRI, 3.6 mnt/year of EAF steelmaking, and 3.5 mnt/year of rolling capacity, supporting the UAE’s push to strengthen domestic manufacturing and supply chains.
Outlook
UAE scrap prices are expected to remain firm over the coming week, with limited availability and high billet replacement costs keeping offers supported. However, mill buying levels are likely to remain around AED 980-990/t, limiting the scope for traders to achieve offers above AED 1,000/t and keeping fresh transactions subdued.
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