- Hadeed’s rebar price cuts narrow gap between top and smaller Saudi mills
- UAE rebar market stable; post-summer demand expected to improve
BigMint’s UAE domestic processed HMS index slipped AED 5/t ($1.5/t) w-o-w to AED 1,196/t ($326/t). Local scrap prices eased by AED 5-10/t ($1-3/t) for some grades as export activity slowed and bookings by Pakistan remained muted. The full impact of this decline is expected to be seen in new orders for deliveries starting next week.
As per a mill-side purchase representative, “We are getting LMS at AED 850-900/t ($232-245/t) and have booked 200 t of HMS Processed at AED 1,200/t ($327/t) DAP Abu Dhabi. The rebar market remains stable, with demand expected to pick up post-summer (June-September).”
A mill representative said, “International pressure is keeping prices low–major steel mills like ESA and AGSI have indicated a minimum drop of AED 20/t. For DAP Abu Dhabi, HMS processed bids are around AED 1,180/t ($321/t) and shredded at AED 1,250/t ($340/t). We continue to adjust prices to stay competitive. This week’s bids are AED 1,180-1,190/t ($321-324/t) for HMS Processed and AED 1,250-1,260/t ($340-343/t) for Shredded.”
Prices at the start of the week…
- LMS: AED 950-1,000/t ( $259-273/t)
- HMS 80:20: AED 1,150-1,170/t ($313-319/t)
- HMS processed/sheared: AED 1,210-1,220/t ($330-332/t)
- PNS: AED 1,230-1,240/t ($335-338/t)
- PNS processed: AED 1,240-1,260/t ($338-343/t)
- End-cut: AED 1,260-1,280/t ($343-348/t)
…Towards the weekend
- LMS: AED 850-950/t ($232-259/t)
- HMS 80:20: AED 1,130-1,150/t ($308-313/t)
- HMS processed/sheared: AED 1,190-1,200/t ($324-327/t)
- PNS: AED 1,210-1,220/t ($330-332/t)
- PNS processed: AED 1,230-1,240/t ($335-338/t)
- End-cut: AED 1,260-1,270/t ($343-346/t)
Emirates Steel Arkan (ESA) kept rebar prices unchanged for October at AED 2,590/t ($705/t) exw-Abu Dhabi, excluding 5% VAT, after raising them by AED 110/t ($30/t) in Sep. The rollover reflects stable domestic demand, supported by steady construction activity, despite global market volatility.
Export market
As per the UAE-based trader, European shredded scrap is trading at $365-366/t CFR Qasim, with UAE material holding a $15-20/t premium over UK/EU levels. The Middle East HMS-PNS mix was last heard at $362-366/t.
“Export prices from the UAE to Pakistan have softened recently. Our last PNS sale was at $380/t, but the latest deal went through at $370/t–a drop of $10/t, roughly AED 40/t. The slowdown is largely due to the ongoing monsoon, which has tempered market activity in Pakistan. However, we continue to receive orders from reliable buyers, even at the lower price, so demand remains steady despite the softer levels,” he added.
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) stood at $4-5/t. Imported HMS 80:20 CFR Nhava Sheva was assessed at $330/t, while UAE-processed HMS 80:20 traded at $325-326/t DAP Abu Dhabi.
Saudi Arabia: Hadeed keeps scrap stable, cuts long steel prices
Hadeed kept scrap buying prices unchanged but cut October long steel prices on weak demand, lowering rebar to SAR 2,055/t ($548/t), down SAR 75/t ($20/t) m-o-m. Smaller mills offered SAR 1,900-1,980/t ($507-526/t). Cuts narrow the gap between large and small producers, but demand stays weak amid sluggish construction.
Local scrap tags stable amid tight supply. For Jeddah, it’s SAR 1,340-1,360/t ($357-362/t) for HMS oversize and SAR 1,400-1,430/t ($373-381/t) for HMS resized. For the Riyadh region, SAR 1,370-1,390/t ($365-370/t) HMS 2 and SAR 1,415-1,440/t ($377-384/t) shredded.
Outlook
In the short term, UAE scrap markets are likely to stay cautious. Domestic prices are stable due to limited supply, while exports to Pakistan have slowed, with international pricing pressure keeping bids below expectations.
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