- Weak rebar demand continues to cap domestic scrap price upside
- Chinese rebar competition adds pressure on local UAE mills
UAE domestic scrap prices remained broadly stable during the week ended 1 October, with limited mill buying and weak finished-steel demand offsetting support from international scrap markets.
A major Abu Dhabi-based mill source said the market remained inactive, with no new bookings reported.
The BigMint assessment for HMS 80:20 (processed) stood at AED 1,033/t ($281/t), up by AED 3/t ($1/t) w-o-w from AED 1,030/t ($280/t). Premium yard offers for shredded scrap were heard at AED 1,140-1,150/t ($310-313/t).
The Abu Dhabi mill maintained buying indications at AED 1,020-1,030/t ($278-280/t) for HMS 80:20 and AED 1,130-1,140/t ($308-310/t) for shredded. Smaller players were also heard offering around these lower levels.
A Dubai-based scrap trader participant described overall scrap supply, availability, and quality as good. Local prices, excluding 5% VAT, were heard at AED 950-960/t ($259-261/t) for HMS 80:20, AED 1,030-1,040/t ($278-281/t) for processed HMS, AED 1,130-1,150/t ($308-313/t) for shredded, AED 1,010-1,020/t ($273-275/t) for PNS, AED 1,060-1,070/t ($286-289/t) for processed PNS, and AED 840-860/t ($227-232/t) for LMS.
Another Abu Dhabi-based major mill source said it was not actively purchasing after securing sufficient quantities to cover around 30-40 days of requirements. The mill showed interest in lower-priced material, with prices potentially negotiable when it returns to the market, given limited scrap consumption.
A recent deal involved 500 t of Middle East-origin compressor scrap at $415/t CFR Qasim, while shredded scrap remained unworkable for Pakistani buyers. With weak UAE steel demand, limited mill buying, and nil export activity, domestic scrap prices are finding little room to move higher despite firmer international scrap prices and elevated logistics costs.
Weak steel demand limits scrap upside
Finished-steel demand remained subdued. Domestic rebar was indicated at AED 2,840-2,880/t ($773-784/t) exw, largely stable w-o-w.
The largest UAE producer maintained its rebar offer at AED 2,921/t ($795/t) exw, while deals were heard at AED 2,850-2,880/t ($776-784/t). Other producers were heard selling at around AED 2,830-2,850/t ($771-776/t), while another local mill reduced its offer by AED 20-30/t ($5-8/t) to AED 2,830-2,840/t ($771-773/t).
A trader said Chinese-origin rebar is adding pressure to the UAE market, with some material being supplied directly to major projects. The source noted that a major airport expansion alone received nearly 100,000 t of rebar in September, adding to competition for local mills.
Imported rebar demand also remained subdued, with workable offers around $760-770/t CPT Jebel Ali and no major trades heard.
Billet and metallic imports remain constrained
GCC-origin billet was indicated at $650-660/t CPT Jebel Ali, while Chinese billet was offered at $590-600/t CPT. Asian offers remained largely nominal and unworkable due to security concerns and high delivery costs.
No major billet deals were reported during the week. Market participants remained concerned about logistics and security risks around the Strait of Hormuz and Bab-el-Mandeb, which could disrupt supplies of iron ore pellets, HBI, and other metallics to UAE EAF mills.
Outlook
The UAE scrap market is likely to remain cautious ahead of the 8 October 2026 expiry of the temporary export restrictions. The ban could be renewed unless further notice is issued, keeping participants uncertain about future scrap availability and export flows.
The outcome could set the direction for UAE scrap prices and mill buying in the following weeks, with buyers likely to remain cautious until there is clarity.
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