- Mills may raise scrap purchase prices amid rising rebar demand
- UAE exports bearish amid weak South Asian buying interest
BigMint’s UAE ferrous scrap index has edged up by AED 5/t ($2/t) w-o-w, after an initial rise of AED 11/t ($3/t) followed by a mid-week dip of AED 6/t ($2/t), amid limited buying interest from some mills.
HMS processed trades were recorded at AED 1,195-1,200/t ($325-327/t), as per sources.
As rebar demand is improving, mills are likely to increase their scrap purchase prices in the coming days.
BigMint‘s benchmark assessment for processed HMS 80:20 stood at AED 1,196/t ($326/t), up AED 5/t ($2/t) from last week’s AED 1,191/t ($324/t) DAP Abu Dhabi.
Market comments
“Scrap prices in the UAE have inched up slightly, but rebar prices remain mostly stable,” said a Sharjah-based trader. “Currently, workable levels are around AED 1,190-1,200/t ($324-327/t) DAP for processed HMS, AED 1,250-1,260/t ($340-343/t) for shredded, and AED 1,150-1,160/t ($313-316/t) for unprocessed HMS.”
“A major Abu Dhabi-based mill’s purchase price for processed HMS and shredded scrap this week stand at AED 1,200/t ($327/t) and AED 1,250/t ($340/t), respectively,” said a source.
The source added that the mill tentatively booked around 3,000-4,000 t of processed HMS and shredded at these levels.
“Depending on quality, our purchase price is currently around AED 1,180-1,190/t ($321-324/t) for processed HMS and AED 1,230-1,240/t ($335-338/t) for shredded,” said an Abu Dhabi-based mill representative. “The domestic scrap market remains stable, but with steel prices improving recently, we might see a ripple effect, pushing scrap prices higher next week.”
UAE billet market faces potential disruption
The UAE billet market is on edge as UK CARES is reportedly reviewing ECAS certificates for ESCO and SISCO, which could block their UAE access. While the mills deny the withdrawal, market sources claim scrutiny on other Iranian suppliers and shipments via Oman. Despite the uncertainty, ESCO sold 15,000 t of blooms to the GCC at $425-435/t FOB, with delivery in late May.
The UAE ferrous scrap export market remains bearish, with subdued buying interest from South Asian buyers. Recently, around 300 t of HMS-PNS mix were sold at $362-365/t CFR Qasim amid weaker buying sentiments.
Nevertheless, Pakistan’s market, which was largely inactive until last week, is gradually reviving. However, with no major orders are in sight, traders are uncertain if Pakistani buyers will be willing to pay around $370/t for HMS.
Meanwhile, UAE shredded scrap offers are slightly firmer at $395/t CFR Qasim, while HMS-PNS mix is quoted at $380-385/t CFR Qasim. In Bangladesh, UAE HMS 1 is being offered at $390-395/t CFR Chattogram, but this level is unworkable for most Chattogram-based buyers. However, mills in Dhaka, returning to the market after a long break, may show interest and secure some volumes.
HMS (80:20) spread
The average spread between HMS 80:20 from Europe and the UAE’s processed HMS 80:20 remain range-bound w-o-w at approximately $34-35/t CFR Nhava Sheva. Imported HMS prices for west coast of India stood at $360/t CFR, while the UAE’s processed HMS prices were at $326/t DAP Abu Dhabi.
Outlook: Market participants noted that end-user interest in rebar has picked up, boosting sentiment in the domestic steel sector. With rebar prices firming up, scrap prices are likely to remain supported in the near term as mills look to secure raw material stocks.
Leave a Reply