- Some mills continue booking HMS and shredded at prevailing levels
- Billet costs rise as freight, insurance and rerouting expenses increase
Scrap prices in the UAE remained largely stable this week, with rates edging up for select grades. BigMint assessed processed HMS 80:20 range-bound at AED 1,015/t ($276/t), down by AED 2/t ($1/t) w-o-w.
Other domestic grades were assessed at AED 920-960/t ($248-259/t) for HMS 80:20, AED 1,015-1,025/t ($274-277/t) for HMS processed, AED 1,050-1,070/t ($284-288/t) for PNS processed, AED 1,070-1,090/t ($288-293/t) for shredded, and AED 760-780/t ($205-211/t) for LMS.
Market scenario
A source with a Dubai-based major trading house indicated HMS processed at AED 1,000-1,010/t ($270-273/t) DAP Abu Dhabi and shredded at AED 1,060-1,070/t ($286-289/t) DAP Abu Dhabi.
The source said the trading house booked around 2,500 t of HMS processed last week at AED 1,000-1,010/t ($270-273/t) DAP Abu Dhabi, with prices broadly unchanged from current levels.
Meanwhile, an Abu Dhabi-based mill source indicated current buying levels of around AED 1,010-1,020/t ($273-275/t) DAP for HMS processed and AED 1,070-1,080/t ($289-292/t) DAP for shredded.
The mill source added that it booked a minimum of 3,000 t of shredded at AED 1,010-1,020/t ($273-275/t) DAP, while around 2,500 t of HMS processed was booked at AED 1,070-1,080/t ($289-292/t) DAP.
The transaction levels suggest that mills remain active in the domestic market, but buying is still largely requirement-driven. The relatively narrow spread between assessed prices and reported bookings also indicates limited scope for significant price movement without a change in mill demand or scrap availability.
Middle East billet market
Price volatility across the Middle East was also limited this week, although market discussions remained focused on logistics, freight costs and geopolitical risks rather than underlying demand.
In the UAE, ECAS-certified Asian billet landed at approximately $530-535/t CFR, with some contracts including Strait of Hormuz rerouting clauses.
Separately, UAE imports of Chinese billet surged to over 400,000 t in January-July 2026, making the UAE the second-largest GCC destination for Chinese billet after Saudi Arabia. The increase was driven by competitive Chinese prices and tight regional billet availability, encouraging re-rollers to source more feedstock from China.
Regulatory support has also improved, with the UAE issuing seven ECAS certificates to Chinese billet producers in 2026, compared with just two in 2025.
Domestic billets in Saudi Arabia and Oman were priced at $640-650/t (delivered), while prompt cargoes commanded a $18-20/t premium as war-risk insurance and rerouting expenses continued to increase landed costs.
North Africa showed greater price divergence. Egypt’s domestic rebar price stood at EGP 30,000-31,000/t including VAT, equivalent to around $588-604/t exw, excluding VAT, up EGP 300-350/t ($6-7/t) during the month. Turkish rebar import offers reached $595-600/t FOB, up $10-12/t w-o-w, increasing replacement costs for North African buyers.
Meanwhile, Iranian billet had previously been offered at around $415-420/t FOB, but no fresh quotes emerged this week, limiting its immediate influence on regional billet pricing.
Outlook
UAE scrap prices are likely to remain largely stable in the coming weeks, with mill bookings and domestic availability determining the direction of individual grades. Sustained procurement could support HMS and shredded prices, while moderate to stable steel demand could limit upside.
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