This week, scrap prices in the UAE were range-bound, with a nominal hike of $1/t (AED 4/t) seen in a relatively slow market, continuing to hinder further new bookings from mills during the Ramadan month.
As per a few market sources, ferrous scrap prices have seen a relatively slow movement in the past week due to weak scrap demand from mills amid nominal levels of inventory.
The stable weekly price movement was majorly due to comparatively slow demand for steel, with unchanged rebar prices. Mills opted a wait-and-watch approach to attain more price clarity before future bookings.
BigMint’s bi-weekly assessment showed an AED 4/t ($1/t) rise for HMS (80:20) processed scrap grade, maintaining a price range of AED 1,254/t ($341/t) DAP.
Market survey: According to BigMint’s week 13 market survey, shredded scrap bids and workable prices ranged from AED 1,360-1,380/t ($370-376/t), while HMS (80:20) processed was assessed at AED 1,255-1,270/t ($342-346/t) DAP Abu Dhabi. Abu Dhabi-based mills have purchased around 1,500-2,000 t of domestic scrap so far, with prices ranging from AED 1,245-1,265/t ($339-344/t) (HMS sheared/processed).
According to a supplier in Sharjah, the last day saw a purchase of AED 1250-1255/t for HMS totalling approximately 200 t. However, the quantity purchased by mills this month remains less than that of last month.
UAE wire rod sector faces challenges from aggressive import offers, prompting Emirates Steel Arkan to adopt a flexible pricing strategy for April. Domestic wire rod prices for AISI/SAE 1006 to 1018 grade products (6.5-14 mm) stand at AED 2,149/t ($585/t) exw, effective 1 April. Despite satisfactory local demand, average selling prices have declined by AED 37-55/t ($10-15/t) due to aggressive pricing by foreign suppliers, notably Chinese suppliers. Other mills, like Fujairah-based producers and Qatar Steel FZE, are expected to announce their prices soon to align with market dynamics.
HMS spread: The average spread between the CFR Nhava Sheva HMS (80:20) and UAE local HMS (80:20) processed scrap widened to $45-49/t, following the slight recovery in Indian imported HMS scrap prices from Europe. Imported HMS (80:20) prices (CFR west coast India) increased slightly to $388-390/t, while UAE HMS (80:20) processed scrap prices were at $340-341/t DAP.
KEZAD Group and Green Metal Industries have joined forces to establish a state-of-the-art steel recycling and production facility in Abu Dhabi. With a $100 million investment, the plant will feature advanced recycling technologies, melt shop and refining facilities, continuous casting, and a rolling mill. Located in the KEZAD Industrial Area, the facility will contribute to sustainable development and innovation in the construction industry across the GCC region. Commercial production is slated to commence in Q1 2025.
Scrap export market-
Offers and deals for Bangladesh: Indicative prices for HMS 1 and PNS mix ranged from $422-424/t CFR Chattogram, with PNS scrap at $424-426/t CFR Qasim basis. A deal of 1000 t of HMS 1 was done at $410/t CFR Chattogram, and 150-200 t of PNS (6-8 containers) from the UAE were sold at $415/t CFR Chattogram.
Offers for Pakistan: Fabrication scrap was offered at $420/t for 500 t loading, HMS sheared was offered at $405/t for 500 t loading, HMS was offered at $395/t for 1,000 t loadings, shredded offers were heard at $425-428/t for 500 t loadings, and GI Bundle at $390/t for 300 t loading.
Outlook: The scrap market in the UAE is expected to remain relatively stable, with prices to move within a narrow range. Moderate steel demand is anticipated in the near term, with market activities expected to continue at a steady pace.
