- VAT refund issues push suppliers to focus on local sales
- EMsteel may hike or maintain rebar prices in March
Scrap demand in the UAE’s domestic market has improved, while exports remain volatile. Suppliers are reportedly focusing on local sales due to VAT refund issues.
BigMint’s benchmark assessment for HMS (80:20) processed scrap was at AED 1,220/t ($332/t), reflecting an AED 3/t ($1/t) increase compared to last week’s AED 1,217/t ($331/t).
“Pre-Ramadan restocking has also supported demand. Meanwhile, rebar demand remains strong, and the market anticipates EMsteel may either hike prices or keep them stable for March 2025,” a market participant noted.
HMS processed offers stand at AED 1,220/t ($332/t), with bids at AED 1,200-1,205/t ($327-329/t). Unprocessed HMS is at AED 1,150-1,170/t ($313-319/t), while shredded is quoted at AED 1,290-1,310/t ($352-357/t). Fabrication scrap is at AED 1,270-1,290/t ($346-352/t). A shredded deal was booked at AED 1,250/t ($341/t) DAP Abu Dhabi. Market prices: HMS processed was at AED 1,175-1,190/t ($320-324/t), and shredded, at AED 1,230-1,240/t ($335-338/t).
“The market has improved slightly, but exports remain slow. We booked 500-1,000 t of shredded at AED 1,250/t ($341/t) DAP Abu Dhabi, while some buyers informed that HMS processed is trading at AED 1,175-1,190/t ($320-324/t). Shredded offers are around AED 1,230-1,240/t ($335-338/t),” an Abu Dhabi-based mill commented.
“ESI booked processed HMS at AED 1,200-1,220/t ($327-332/t), slightly above market levels, while unprocessed HMS traded at AED 1,150-1,160/t ($313-316/t). Shredded demand is weak, with ESI indicating AED 1,290-1,300/t ($352-354/t),” a source said.
Export market
Strong Pakistani demand has pushed suppliers to bid higher, but traders expect this to be short-lived due to billet oversupply. Buyers are restocking ahead of Ramadan, supporting steady rebar demand.
HMS (80:20) spread
The average spread between CFR Nhava Sheva HMS (80:20) from Europe and UAE local processed HMS (80:20) decreased to approximately $15-16/t from $20-22/t a week ago. Imported HMS prices for CFR west coast of India stood at $345-347/t, while UAE processed HMS prices were at $330-332/t DAP Abu Dhabi.
UAE HRC market
“No HRC deals have been heard in the UAE or the broader GCC this week, as trading remains on hold,” shared a market insider. Despite earlier expectations of a price drop, import offers have stayed largely unchanged.
Indian HRC is quoted at $530-532/t CFR UAE, while Chinese offers range from $495-500/t CFR.
Saudi billet buyers are testing Asian suppliers’ flexibility, but sellers remain firm, unwilling to lower offers to stimulate trade. Chinese traders have raised base-grade billet offers to $475-480/t CFR for April shipments, up $5-10/t w-o-w. “After the Chinese lunar holidays, they are pushing prices higher, citing government support measures,” a market insider said. Reports suggest a deal at $477/t CFR Jeddah, though details remain unclear.
Indonesian suppliers are following a similar approach, offering billet at $485-490/t CFR. The unexpected price hike has left Saudi buyers cautious. “I don’t see why Chinese suppliers are so optimistic. Given global uncertainties, their economy may struggle to sustain growth. If prices drop to $465-470/t CFR, we might reconsider,” a trader remarked.
Meanwhile, domestic billet prices remain steady, with the largest merchant producer keeping offers at SAR 2,060-2,075/t ($549-553/t) exw, while other mills are quoting SAR 2,100/t ($560/t) exw.
Outlook
UAE’s domestic scrap market is expected to remain firm in the near term, supported by pre-Ramadan restocking and stable rebar demand. However, export activity may stay subdued as suppliers prioritise local sales due to VAT refund challenges.
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