- Local buying remains slow amid hot weather
- Hormuz-linked freight concerns keep regional trade cautious
UAE domestic scrap prices remained largely stable w-o-w, with moderate trading activity and cautious buying sentiment from local mills and recyclers amid extreme hot weather in the region. BigMint assessed HMS (80:20) processed at AED 1,038/t ($283/t) DAP Abu Dhabi, inching down AED 2/t ($0.5/t) w-o-w.
Market participants continued to monitor geopolitical tensions around the Strait of Hormuz, with vessel movement uncertainty and freight volatility remaining key concerns for regional scrap trade flows.
Market comments
A UAE-based market participant said, “Local buying activity usually slows during the summer period, as the UAE experiences extremely hot and humid conditions driven by its desert climate, warm Gulf waters, and seasonal weather patterns. This often impacts construction activity, outdoor operations, and overall scrap movement across the domestic market.”
An Abu Dhabi-based mill source said LMS prices were heard at AED 800-820/t ($216-221/t), while HMS 80:20 was indicated at AED 940-960/t ($254-259/t). HMS Super was heard at AED 970-980/t ($262-265/t), shredded scrap at AED 1,070-1,090/t ($289-294/t), and processed HMS 80:20 processed scrap at AED 1,020-1,040/t ($275-281/t). Unprocessed PNS was indicated at AED 1,000-1,010/t ($270-273/t), excluding 5% VAT.
A Sharjah-based trader source said HMS 80:20 was heard around AED 950/t ($257/t), while processed HMS material continued to command a premium of around AED 50-70/t ($14-19/t) over standard HMS prices. Another mill-side source indicated workable levels for processed HMS at around AED 1,030-1,040/t ($278–281/t).
Meanwhile, a Sharjah-based recycler source indicated processed HMS at AED 1,030-1,040/t ($278-281/t) DAP Abu Dhabi, shredded scrap at AED 1,100-1,120/t ($297-302/t), and PNS at AED 1,070-1,090/t ($289-294/t) DAP Abu Dhabi.
UAE-based EMsteel signed multiple partnerships focused on manufacturing expansion, logistics optimisation, and steel decarbonisation initiatives, reflecting increasing regional investment in low-carbon steel and industrial infrastructure development.
Outlook
The UAE scrap market is expected to remain largely stable in the coming days, although freight volatility and regional geopolitical developments may continue to influence export sentiment and related metallics’ pricing. Seasonal summer conditions, characterised by extreme heat and humidity, may also keep local buying activity relatively slow and weigh on construction-linked scrap movement across the domestic market.
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