- Vessel incident dampens buying sentiment, with suppliers anticipating further price cuts.
- Emirates Steel maintains rebar rates amid sluggish finished steel demand.
The UAE ferrous scrap market remains under pressure amid subdued steel demand, sufficient mill inventories and increased material availability following a vessel incident at sea. Prices that had shown potential to rise a few weeks ago have since stabilised or moved lower.
A Dubai-based trader source said the incident had weakened market sentiment, with buyers negotiating lower prices amid ample offers. Domestic HMS processed prices delivered to Abu Dhabi (DAP) have reportedly fallen below AED 1,000/t, as oversupply and subdued demand weigh on the market.
A UAE-based major steelmaker source said HMS is being purchased at around AED 1,000-1,020/t, while other super grades are trading near AED 950/t. Shredded scrap prices are reportedly reaching AED 1,120-1,130/t at the upper end.
BigMint price assessment
BigMint assessed HMS 80:20 (processed) at AED 1,003/t ($273/t), down AED 23/t ($6/t) week-on-week from AED 1,026/t ($279/t).
Indicative domestic scrap prices, excluding 5% VAT and payable within one week, stood at AED 840-850/t ($229-232/t) for LMS, AED 990-1,000/t ($270-272/t) for HMS processed, AED 1,080-1,090/t ($294-297/t) for shredded scrap and AED 980-1,000/t ($267-272/t) for unprocessed PNS.
Suppliers expect prices to decline by a further AED 20-30/t ($5-8/t) next week, amid subdued demand and ample availability.
Finished steel market
Emirates Steel kept domestic rebar prices for 12-32 mm sizes unchanged for the fourth consecutive month as November rolling began, at AED 2,921/t ex-works ($796/t). The unchanged pricing reflects limited movement in the finished steel market.
Outlook
Scrap prices are likely to remain under pressure in the near term as steelmakers rely on existing inventories and buyers leverage ample availability. Further price movements will depend on demand recovery, mill restocking, and finished steel sales.
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