- Mills limit scrap intake amid year-end slowdown
- Market awaits Jan price announcement, rollover expected
The UAE’s domestic scrap index declined by AED 22/t ($6/t) on 19 December as compared to 10 December, with processed heavy melting scrap (HMS) falling to AED 1,139/t ($310/t) as of 17 December.
Market participants noted that processed local scrap prices in the UAE remain largely range-bound, as subdued buying activity persists, with mills focused on keeping year-end inventories to a minimum.
As a market insider, local UAE scrap prices remain stable within a narrow range: LMS is assessed at AED 850-950/t ($231-259/t) and HMS (80:20) at AED 1,070-1,090/t ($291-297/t). Processed grades continue to trade at a premium, with processed HMS at AED 1,130-1,140/t ($308-310/t) and processed PNS at AED 1,160-1,180/t ($316-321/t).
Fabrication scrap is quoted at AED 1,140-1,150/t ($310-313/t), while end-cut scrap is assessed slightly higher at AED 1,170-1,180/t ($319-321/t).
A representative of a major mill said current DAP levels stand at AED 1,145-1,155/t ($311-314/t) for processed HMS, AED 1,105-1,115/t ($301-304/t) for HMS, and AED 1,160-1,170/t ($316-318/t) for shredded scrap. However, mills appear in no rush to revise offers, keeping overall market activity moderate.
UAE steel market
The UAE’s rebar market has been facing inclement weather conditions since last week, with intermittent rainfall reported across parts of the country. Rains have mainly affected the northern and eastern regions, offshore islands, and pockets of Abu Dhabi, and remain largely localised.
Market participants stressed that the impact on the steel sector has been minimal. So far, construction activity, logistics, and deliveries are continuing as usual, as per sources.
On the pricing front, the market is largely in a wait-and-watch mode ahead of a leading mill’s January 2026 announcement, with most participants expecting prices to be rolled over.
Emirates Steel’s December rebar offer remains at AED 2,648/t ($721/t) exw, unchanged from November, under 90-day LC terms, with an additional AED 92/t ($25/t) applied on 8 mm rebar. In the non-benchmark segment, deals have been heard at around AED 2,360-2370/t ($642-645/t) delivered. Overall market requirements for the current period are estimated at over 0.5 mnt.
Outlook
UAE scrap prices are expected to remain range-bound in the near term, with mills limiting procurement and maintaining caution. Rebar prices are likely to stay stable, with the January 2026 benchmark widely expected to be rolled over, barring any sharp pickup in demand or unexpected supply disruptions.
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