- Domestic market dips despite export-driven momentum
- Export inquiries from Pakistan remain steady
BigMint’s UAE domestic processed HMS index fell by AED 16/tonne (t) ($4/t) w-o-w to AED 1,205/t ($328/t), driven by sluggish local demand and limited purchases from key mills.
Market commentary
Domestic prices have inched up recently, with premium yards quoting around AED 1,220-1,230/t ($332-334/t), while domestic market levels are hovering at AED 1,200-1,210/t ($326-329/t) DAP.
A trader source informed, “While domestic rebar prices have remained unchanged for August, reflecting a stable but inactive market, exporters are finding better opportunities in Pakistan.”
The recent reduction in import duties on HMS and re-rollable scrap in Pakistan has boosted demand for these materials, prompting UAE suppliers to divert more volumes toward exports. This shift is helping sustain overall market movement despite the domestic slowdown.
In terms of concluded deals around 2,000-4,000 t of processed HMS were heard at AED 1,200-1,205/t levels ($326-329/t) on a DAP Abu Dhabi basis.
Additionally, other grades like HMS Super were being offered at AED 1,170–1,180/t ($318-321/t), LMS at AED 860–870/t ($234-236/t), and Shredded scrap at AED 1,240-1,250/t ($337-340/t).
Export market update
HMS from Dubai is currently being offered at around $375-378/t levels, while Sheared HMS is slightly higher at $380/t. Indicative levels for UAE-origin shredded scrap to Pakistan are reportedly in the range of $390-$400/t, CFR Qasim. However, only a few selective mills are actively procuring UAE-origin shredded material at $390/t levels.
Recently reported deals include 500 t of UAE-origin Sheared HMS concluded at $378/t CFR Qasim, along with another 500 t of Fabrication scrap booked at $395/t CFR Qasim.
HMS (80:20) spread
The average spread between HMS 80:20 from Europe and the UAE’s processed HMS 80:20 stood at approximately $8-10/t CFR Nhava Sheva. Prices of imported HMS on the west coast of India stood at $336-338/t CFR, while the UAE’s processed HMS tags were at $328-330/t DAP Abu Dhabi.
Outlook
UAE domestic scrap prices are likely to remain slightly soft or range-bound in the near term, as mills have limited their purchases. With limited buying interest and a wait-and-see approach prevailing, prices are expected to stay stable or ease marginally until stronger demand cues become evident, although nearby markets such as Pakistan may provide some support.
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