- Emirates Steel rolls over rebar prices for April
- Regulatory tightening amid geopolitical tensions
The UAE’s ferrous scrap market remained subdued this week, with buying activity slowing sharply amid the Eid holiday period and broader market uncertainty. The domestic scrap index declined by AED 21/t ($6/t) w-o-w to AED 1,143/t ($311/t) on 18 March with reduced mill procurement and weak spot activity.
As per a Dubai-based trading house representative, no fresh offers or deals were reported, with market activity largely stalled, indicating a pause in trading momentum.
Meanwhile, an Abu Dhabi-based steel mill noted that sheared HMS was heard at AED 1,125-1,130/t ($306-308/t) DAP, while shredded scrap was around AED 1,175-1,180/t ($320-321/t) DAP. Whereas some reported processed HMS at AED 1,130-1,145/t ($308-312/t) delivered. These levels suggest stable pricing but weak buying interest as mills remain cautious.
Emirates Steel rolls over rebar prices for April
In the finished steel segment, Emirates Steel rolled over its April rebar list prices at AED 2,721/t ($741/t) exw for 12-32 mm. This move signals a disciplined pricing approach, as mills aim to maintain stability amid soft demand and rising geopolitical risks.
The UAE steel market is maintaining a strict stance on supply chain traceability, with increased regulatory scrutiny following a recent import incident. A vessel carrying around 30,000 t of billet and wire rod, reportedly linked to Iran, triggered concerns among local producers and authorities. As a result, the cargo was not allowed to be discharged, and the vessel departed without unloading.
Government officials have since conducted inspections at multiple steel companies to ensure compliance with ECAS norms and to prevent unfair trade practices amid rising geopolitical tensions. Industry participants noted that this move reflects a broader effort to stabilise the domestic market and limit exposure to sanctioned or high-risk sources.
Following this development, market participants expect tighter enforcement of import regulations and stricter checks on material origin. Traders may face higher compliance requirements and reduced flexibility in sourcing, particularly from regions under scrutiny. Overall, sourcing material linked to Iran is likely to become increasingly difficult in the near term, reshaping trade flows into the UAE.
Outlook
Over the next week, scrap prices are expected to remain under mild pressure due to weak demand and holiday-related slowdown. However, tighter regulations and geopolitical uncertainty may restrict supply options, providing some underlying support to prices.
Leave a Reply