- UAE billet buyers resist higher offers, prefer $450/t range
- Pakistani restocking strengthens UAE scrap export prices
BigMint‘s UAE domestic processed HMS index increased by AED 9/t ($2/t) w-o-w to AED 1,197/t ($326/t) supported by robust demand from Pakistan. Active restocking by Pakistani mills kept CFR Qasim levels for UAE-origin scrap high and encouraged local suppliers to maintain elevated offer levels. UAE-origin shredded offers to Pakistan were heard at $395-400/t CFR Qasim
On a DAP basis (excluding VAT), light melting scrap (LMS) was quoted at AED 860-880/t ($234-239/t), while HMS 80:20 and HMS processed were both assessed in the range of AED 1,170-1,200/t ($318-327/t), while shredded and PNS stood at AED 1,250-1,260/t ($340-343/t). LMS 50:50 (mixed) stood at AED 1,030-1,050/t ($280-286/t), fabrication was priced at AED 1,260-1,270/t ($343-346/t), and end-cutting inched up to AED 1,280-1,300/t ($348-354/t).
Domestic workable (early week):
- HMS processed: AED 1,180-1,185/t ($321-323/t)
- HMS super: AED 1,150-1,160/t ($313-316/t)
- LMS: AED 840-860/t ($229-234/t)
- Shredded: AED 1,220-1,240/t ($332-338/t)
Domestic workable (late week):
- HMS processed: AED 1,190-1,200/t ($324-327/t)
- HMS super: AED 1,160-1,170/t ($316-319/t)
- LMS: AED 860-870/t ($234-237/t)
- Shredded: AED 1,240-1,250/t ($338-341/t)
Export market scenario
Shredded offers from the UAE remained firm at $394-400/t CFR Qasim, while HMS-PNS mixed cargoes were quoted at $382-385/t CFR. Pure GI bundles were heard at around $375/t CFR, and HMS 80:20 stood at $360-365/t CFR.
On a deal-level basis, the export market remained limited for India, with a deal for 400 t of HMS 1 from the Middle East sold at $360/t CFR Mundra.
HMS (80:20) spread
The average spread between HMS 80:20 from Europe and the UAE’s processed HMS 80:20 shrank w-o-w to approximately $6-8/t CFR Nhava Sheva. Prices of imported HMS on the west coast of India stood at $331-332/t CFR, while the UAE’s processed HMS tags were at $325-326/t DAP Abu Dhabi.
UAE billet market updates
UAE re-rollers are holding back on billet purchases as Asian suppliers raise offers by $8-10/t to $468-470/t CFR. Most buyers find $450/t more acceptable and are waiting, with recent shipments already en route. AGSI, previously active at $490-495/t CFR, has paused billet sales, likely focusing on rebar amid strong local demand. Iranian billet remains the cheapest at $440-445/t CFR Jebel Ali, despite certification challenges. While demand persists, buyers are expected to return once prices adjust.
Outlook
UAE domestic scrap prices might rise slightly in the coming week on steady local demand and limited availability. Sellers lifted offers by AED 10-20/t, supported by active restocking in nearby markets like Pakistan.
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