BigMint’s UAE scrap index down $3/t w-o-w on cautious mill inquiries

• Major scrap grades see slight price declines
• Export offers to Pakistan for HMS remain firm

BigMint’s UAE domestic processed HMS index fell by AED 12/tonne (t) ($3/t) w-o-w to AED 1,210/t ($329/t) amid moderate buying inquiries from major players.

Market highlights

As per a Sharjah-based scrap trader, “Scrap offers on a DAP Abu Dhabi basis showed some softness this week. HMS 80:20 processed hovered at AED 1,200-1,215/t, while shredded commanded a firmer AED 1,270-1,290/t on selective demand from major buyers. LMS stayed at the lower end at AED 850-900/t, but overall sentiment in the UAE scrap market remains cautious, with traders noting selective buying from mills.”

“We booked HMS processed at AED 1,200-1,230/t for 2,000-3,000 t and shredded at AED 1,280-1,300/t for 1,000-2,000 t,” said another UAE-based mill representative.

As per market insiders, domestic scrap sentiment in the UAE softened, with prices easing across most grades by AED 10-20/t.

Offer levels (start of week)

• HMS 80:20: AED 1,180-1,200/t ($322-327/t)
• HMS processed/sheared: AED 1,220-1,230/t ($332-335/t)
• PNS: AED 1,230-1,240/t ($335-338/t)
• PNS processed: AED 1,250-1,270/t ($341-346/t)
• End-cut: AED 1,290-1,320/t ($351-360/t)

Towards weekend

• HMS 80:20: AED 1,160-1,190/t ($316-324/t)
• HMS processed/sheared: AED 1,200-1,210/t ($327-330/t)
• PNS: AED 1,220-1,230/t ($332-335/t)
• PNS processed: AED 1,240-1,260/t ($338-343/t)
• End-cut: AED 1,270-1,280/t ($346-349/t)

Export market update

Pakistan showed moderate interest in the Middle East HMS and PNS mix, with HMS offers at $375/t CFR Qasim. In Bangladesh, only a small 500 t deal was heard for HMS-PNS mix at $358-360/t CFR Chattogram, as heavy rains curbed activity and pressured near-term demand.

HMS (80:20) spread

The average spread between HMS 80:20 from Europe, CFR Nhava Sheva, and the UAE’s processed HMS 80:20, DAP Abu Dhabi, remained at $3-4/t. Prices of imported HMS 80:20 CFR Nhava Sheva stood at $333-334/t CFR, while the UAE’s processed HMS tags were at $329-330/t DAP Abu Dhabi.

Outlook

The UAE scrap market is expected to remain under mild pressure in the near term, with prices likely to hover in a narrow range amid selective buying from mills and cautious sentiment among traders.