- Any mill-side price hike requires stronger construction-led rebar demand
- Soft export demand keeps local scrap under downward pressure
UAE’s domestic processed HMS index declined by AED 19/tonne (t) ($5/t) w-o-w to AED 1,131/t ($308/t), as per BigMint’s assessment on 19 November.
Two major mills have started issuing fresh purchase orders this week, but overall sentiment remains soft. With export activity largely muted, local scrap prices are falling as buyers are only lifting small volumes instead of placing big orders, as per people aware of the developments.
Processed HMS is moving at AED 1,120-1,140/t ($305-310/t), PNS at AED 1,140-1,150/t ($310-313/t), LMS 50:50 at AED 940-950/t ($256-259/t), and HMS 80:20 at AED 1,070-1,090/t ($291-297/t). Recently, prices heard by major mills at recorded at AED 1,130-1,140/t ($308-310/t) for processed HMS and AED 1,090-1,100/t ($296-299/t) for HMS 80:20 DAP Abu Dhabi.
“With mills cutting prices and limiting large intake, the market has clearly softened,” said a Dubai-based scrap supplier.
“HMS processed/sheared is currently workable at AED 1,120-1,130/t ($305-308/t), PNS sheared at AED 1,150-1,160/t ($313-316/t), and shredded at AED 1,180-1,190/t ($321-324/t). Given the overall sentiment, the market is unlikely to see any meaningful improvement soon,” said a major UAE-based trading house.
Export market
Middle East-origin offers to Qasim inched up, with shredded at $366-368/t CFR and HMS at $338-340/t CFR, and HMS-PNS mixed cargoes at $350-355/t CFR.
Emsteel is advancing major long steel upgrades under its AED 625 million Asset Enhancement Programme, appointing Primetals Technologies to modernise key mills in Abu Dhabi. The plan includes installing a new wire rod outlet at rebar mill No. 5 to produce plain wire rod and rebar in coil, alongside a comprehensive cooling-system upgrade at wire rod mill No. 3 featuring a new Morgan Stelmor conveyor and advanced automation.
In Saudi Arabia, rebar prices remain flexible as mills focus on clearing inventories and maintaining cash flow. Buyers are responding to adjusted offers, while improved finished steel activity has lifted sentiment and supported scrap price increases. First-tier mills are offering SAR 2,040-2,080/t ($544-556/t) delivered, with deals mainly at the lower end.
Second-tier mills target around SAR 2,000/t ($533/t), and smaller producers continue selling at SAR 1,900-1,920/t ($507-513/t) amid ongoing market pressure. Some mills have reduced prices by SAR 20-40/t ($5-10/t) to stimulate sales.
Despite slightly better offtake, mills report that revenue gains remain limited due to tight liquidity and intense competition. Scrap prices strengthened by SAR 10-15/t ($3-4/t), now stood at SAR 1,400-1,410/t ($373-376/t) in Jeddah, Riyadh, and Dammam, with supply remaining adequate.
Outlook: Going forward, a meaningful recovery in UAE’s domestic scrap prices will hinge on better liquidity in the market, smoother project execution, and buyers showing readiness to boost stock levels beyond regular consumption volumes.
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