- UAE mills halt purchases amid regional oversupply
- Saudi’s benchmark mill cuts high-grade scrap purchase prices
BigMint’s index for the UAE’s domestic processed heavy melting scrap (HMS) dropped by AED 10/t ($3/t) w-o-w to AED 1,160/t ($316/t). The UAE market is facing regional oversupply, yet export offers remain largely stable versus last week. Middle East-origin shredded and PNS-HMS mix are quoted at $360-365/t and $340-345/t CFR Qasim, respectively.
Sources indicate major mills have halted their scrap purchases for 2-3 weeks. Their last asking prices were AED 1,180-1,190/t ($321-324/t) for HMS and AED 1,230-1,240/t ($335-337/t) for shredded, DAP Abu Dhabi.
As per market insiders, HMS 80:20 stood at AED 1,090-1,100/t ($297-299/t), processed HMS 80:20 at AED 1,150-1,170/t ($313-318/t), PNS at AED 1,170-1,185/t ($318-322/t), and end-cut at AED 1,220-1,240/t ($332-338/t). UAE mills are supplementing supply with DRI from Qatar and around 50,000-60,000 t/month of domestic scrap to secure feedstock amid strong rebar demand.
UAE billet sellers hold firm, supported by strong rebar sales, while buyers target $460-465/t CFR or lower to maximise margins. Local and GCC billets are largely stable–UAE-based mill $480-490/t CPT, Oman-based mill $495-500/t CPT.
Late month, saw nearly 50,000 t of 3sp billets was booked at $460-470/t CFR for December. Sellers prefer redirecting volumes to rebar for higher margins. Indonesian billets stand at $430-440/t FOB ($460-470/t CFR UAE).
Saudi Arabia: Scrap trading across Saudi Arabia turned slightly subdued, reflecting softer sentiment and selective buying from mills. In Jeddah, offers for LMS and HMS mix were heard between SAR 1,120-1,150/t ($298-306/t), while HMS 80:20 hovered in the SAR 1,160-1,180/t ($309-315/t) range. Higher-grade rebar scrap fetched around SAR 1,270-1,280/t ($339-341/t), and PNS held firm between SAR 1,340-1,370/t ($357-365/t).
Moving inland, the central region witnessed a minor downward correction of SAR 1520/t ($4-5/t) from early-week levels, as heavy melting shredded and PNS held steady within SAR 1,350-1,380/t ($360-368/t).
Market sentiment turned softer after the benchmark mill, about two weeks ago, reduced its purchase rates by SAR 35-50/t ($9-13/t). The revised levels placed high-grade HMS at SAR 1,390-1,400/t ($370-373/t), shredded scrap at SAR 1,400-1,410/t ($373-376/t), and light scrap at around SAR 925-928/t ($246-247/t).
Outlook: The UAE’s scrap market sentiment remains cautious, with major mills pausing purchases amid regional oversupply. Domestic HMS has softened slightly, while processed grades and export offers remain largely stable, pointing to a slow market in the coming days.
Leave a Reply