- US tariff issues keep buyers in wait-&-watch mode
- Traders expect selective demand, slight price dip
The UAE’s domestic scrap prices largely remained stable during the first half of the week but increased sharply towards the second half, though fabrication-and HMS processed grade material has seen a notable rise in demand, leading to a price increase.
BigMint’s domestic HMS processed scrap index rose by AED 26/t ($7/t) w-o-w to AED 1,216/t ($331/t), as sellers anticipated a post-Eid recovery in demand.
Market insiders noted a firm upward trend in fabrication scrap, which is now trading at AED 1,250-1,290/t ($340-351/t), up by AED 20-30/t compared to pre-Eid levels.
End-cutting scrap, used in high-precision applications, also edged higher to AED 1,320-1,325/t ($359-360/t), reflecting a modest increase of AED 5-10/t. Sheared PNS, valued for its uniformity and cleaner profile, is being quoted at AED 1,250-1,260/t ($340-343/t).
As per market feedbacks, processed HMS 80:20 continues to fetch a premium at AED 1,215-1,225/t ($331-333/t), while HMS super or 90:10, with slightly better density, remains in the range of AED 1,180-1,200/t ($321-327/t). Regular HMS 80:20 is being offered at AED 1,170-1,190/t ($319-324/t). LMS, varying by mix and density, is trading between AED 980-1,100/t ($267-299/t).
“Because of the US tariff issues, we are also in a wait-and-see mode here in the UAE. On average, HMS Super is trading at around AED 1,180-1,190/t ($321-324/t), and HMS Processed is at AED 1,210-1,220/t ($329-332/t). For shredded the price should ideally be at around AED 1,300-1,310/t ($354-357/t),” said a steel mill based in Abu Dhabi.
“Heard HMS Processed is currently at AED 1,210-1,220/t ($329-332/t),” said a Dubai-based trader. He added, “With limited demand expected after Eid, I guess prices might soften in a week.”
In the export market, UAE-origin HMS is being offered at $370-375/t CFR Qasim. However, Pakistani buyers remain cautious, holding back from bulk bookings amid ongoing uncertainty in global scrap prices.
HMS (80:20) spread
The average spread between HMS 80:20 from Europe and the UAE’s processed HMS 80:20 inched down w-o-w to approximately $30-32/t CFR Nhava Sheva. Imported HMS prices for the west coast of India stood at $360-362/t CFR, while the UAE’s processed HMS prices were at $330-332/t DAP Abu Dhabi.
UAE billet market seeks clarity on ECAS compliance
A 50,000-t billet shipment from Dexin Steel, Indonesia has stirred up a debate in the UAE over the Emirates Conformity Assessment System (ECAS) certification, as the batch was produced before the 4 March cut-off date. While some argue the production timing has breached regulations, others say ECAS validates systems, not batches. The dispute has split opinions and prompted UK CARES to initiate unannounced port inspections. Industry players are now urging clearer, uniformly enforced ECAS rules to ensure fair trade and compliance.
EMSTEEL scales up clean energy use in steelmaking
EMSTEEL, the UAE’s largest steelmaker, has transitioned 86% of its steel production to clean electricity and launched a green hydrogen pilot with Masdar–marking key steps toward reducing emissions. The company is also expanding its use of solar power and supplying low-carbon steel for local infrastructure projects.
These developments support the UAE’s Net-Zero 2050 agenda, with EMSTEEL positioning itself as a regional leader in industrial decarbonisation through cleaner energy and sustainable practices.
Outlook
The UAE’s domestic scrap market is likely to stay firm in the near term, supported by stable demand for high-grade materials like processed HMS and fabrication scrap. While some anticipate mild corrections due to a post-Eid slowdown, overall sentiment remains steady, with buyers staying cautious amid global price uncertainties.
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