- Mills cautious amid high inventories, slow domestic offtake
- Export interest steady but limited to selective buyers
BigMint’s UAE domestic processed HMS index down by AED 20/t ($5/t) w-o-w to AED 1,170/t ($319/t). Price levels slipped further from previous weeks, with offers heard around AED 1,160/t ($316/t) for HMS and AED 1,230/t ($335/t) for shredded scrap. Reportedly, major mills halted deliveries for 3-7 days, while one more Abu Dhabi-based mills to pause scrap purchase for around 2-3 weeks.
As per market insiders, mills held sufficient inventory amid rising domestic scrap inflows, leading to delivery delays of up to 18-24 hours for offloading.
Domestic prices were heard as follows:
- HMS (processed): AED 1,160-1,170/t ($316-319/t)
- Shredded: AED 1,220-1,230/t ($332-335/t)
- PNS: AED 1,200-1,210/t ($327-330/t)
- LMS: AED 900-920/t ($245-250/t)
Last heard workable levels stood at AED 1,150-1,170/t ($313-319/t) for HMS (processed) and AED 1,210-1,230/t ($329-335/t) for shredded scrap.
Export offers were heard around $375/t CFR for UAE shredded and $350-355/t for HMS-PNS mix.
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) dropped t0 $1-2/t. Imported HMS 80:20 CFR Nhava Sheva was assessed at $320-322/t, while UAE-processed HMS 80:20 traded at $318-320/t DAP Abu Dhabi.
Outlook: Market sentiment is expected to stay weak in the near term as mills manage high inventories and slow steel demand. Domestic scrap inflows may keep prices under pressure, while export activity remains limited to selective deals. A clearer trend could emerge once mills resume regular procurement in mid-November.
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