- Traders expect further softening due to global pressure
- EMSteel maintains stable rebar prices for May sales
The UAE’s domestic scrap prices remained range-bound w-o-w amid limited trades and inquiries. BigMint’s domestic HMS processed scrap index inched down by AED 2/t ($1/t) w-o-w to AED 1,214/t ($331/t). As per industry insiders, scrap prices in the UAE saw slight adjustments due to local demand fluctuations.
DAP prices this week ranged within AED 1,100-1,315/t ($300-358/t), with pure LMS at AED 1,100-1,110/t ($300-303/t), HMS 80:20 at AED 1,170-1,180/t ($319-322/t), and processed HMS 80:20 at AED 1,200-1,220/t ($327-333/t). PNS stood at AED 1,200-1210/t ($327-330/t), with tags approximately AED 50/t ($14/t) higher for sheared material. End-cutting prices declined by AED 5-10/t ($1-3/t) to AED 1,310-1,315/t ($356-358/t).
Market commentary
The domestic scrap segment was stable but subdued this week, with limited market movements.
“Anticipating a downturn due to global factors, the current purchasing interest is at AED 1,190-1,200/t,” said a Dubai-based trader.
“Currently, high-quality processed HMS is priced at AED 1,220/t, while low-quality HMS is at AED 1,200/t, and average workable grades are at around AED 1,210/t DAP. As for my sales, I am now selling UAE-origin HMS to Qasim at $368/t, which is an improvement from the $362/t I secured for the same grade just post-Eid,” stated a scrap supplier based in Abu Dhabi.
In the export market, UAE-origin shredded was offered at $395-400/t CFR Qasim, while HMS from the UAE was quoted at around $375/t CFR Qasim. However, buyer interest was lower, hovering at around $360-365/t, indicating a gap between seller expectations and market appetite.
HMS (80:20) spread
The average spread between HMS 80:20 from Europe and the UAE’s processed HMS 80:20 declined by $5-6/t w-o-w, to approximately $24-25/t CFR Nhava Sheva. Prices of imported HMS on the west coast of India stood at $350-355/t CFR, while the UAE’s processed HMS prices were at $330-331/t DAP Abu Dhabi.
UAE HRC market
A Japanese mill received bookings for 16,000 t of HRC at $505/t CFR Jebel Ali, following an earlier 25,000-t deal at similar levels. Procurement in the UAE rose, as re-rollers looked to secure tonnage, though price negotiations remained tense.
Chinese mills offered HRCs at $515-520/t CFR, while UAE buyers pushed for $485-490/t. Indian suppliers were unavailable due to strong domestic demand and a maintenance shutdown at a local steelmaker. Meanwhile, offers from Southeast Asia were unviable due to high prices. With more suppliers entering the market and EU trade restrictions redirecting flows, HRC trade activity in the UAE is expected to stay firm despite ongoing price resistance.
EMSteel maintains May rebar prices
Emirates Steel has rolled over its rebar offers for May’25 deliveries, sources informed BigMint. Offers stood at around $722/t (AED 2,652/t) exw-Abu Dhabi. The company kept its prices unchanged m-o-m, likely driven by factors such as reduced demand during the Ramadan holidays and the prevailing weak global scenario.
Outlook
The UAE’s domestic scrap market is expected to soften further in the near term, amid cautious buyer activity fuelled by global price uncertainties. Market insiders expect no significant recovery in scrap grades such as processed HMS, which are likely to remain below AED 1,200/t in the coming days.
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