- Ramadan season limits spot liquidity
- Export-linked scrap grades show relative resilience
BigMint’s UAE domestic scrap index edged down by AED 7/t ($2/t) w-o-w to AED 1,215/t ($331/t) as of 27 February, amid subdued trading activity during Ramadan. While overall market interest remained muted, tighter scrap collection supported heavy melting grades, whereas construction-linked categories registered mild corrections.
Despite the marginal index decline, domestic scrap supply tightened during Ramadan, keeping the broader market firm with mixed price movements across key grades.
Prices were assessed on a delivered basis and excluding 5% VAT.
- HMS (80:20): AED 1,130-1,140/t ($305-308/t), up AED 10-15/t ($3-4/t)
- LMS: AED 850/t ($230/t), down by AED 50/t ($14/t)
- HMS (processed): AED 1,210-1,220/t ($327-329/t), down AED 10-15/t ($3-4/t)
- PNS: AED 1,220-1,250/t ($329-338/t), up AED 10/t ($3/t)
Market comments
A UAE-based trader noted that PNS is currently being heard at AED 1,200 to 1,220/t DAP ($324 to 329/t), while processed HMS is heard at AED 1,190 to 1,210/t DAP ($321 to 327/t). Shredded remains firmer at AED 1,300 to 1,310/t DAP ($351 to 354/t), supported by some buying interest from Pakistan. However, overall market activity has slowed during Ramadan, keeping most domestic transactions below earlier indicative levels.
Export offers to Pakistan were heard at $390/t CFR Qasim for shredded, $375/t for fabrication scrap, and $368/t for GI bundles. UAE indications stood at $355-360/t for HMS and $385-386/t for shredded.
A Pakistan-based mill owner confirmed steady buying interest, adding that 5,000 t of UAE sheared fabrication scrap was booked at $375/t CFR Qasim, showing workable margins at current billet and rebar realizations. While demand remains selective, Pakistani mills continue to support shredded and fabrication grades.
EMSteel raises March rebar prices by $20/t; market tests resistance
EMSteel increased its official March rebar offers to AED 2,721/t ($741/t) exw, up AED 73/t ($20/t) from February, under 90-day LC terms. An additional AED 92/t ($25/t) surcharge applies to 8 mm rebar. Prices are exclusive of 5% VAT.
Following the benchmark mill’s move, leading suppliers raised official delivered offers by nearly AED 100/t ($27/t) to AED 2,480-2,520/t ($675-686/t) CPT/delivered, also under 90-day LC terms. “Strong demand is backing the increases, though prices are moving into a risky zone,” a market participant commented.
Not all suppliers have formally announced March prices. Several traders prefer to wait for confirmed transaction levels before committing, reflecting uncertainty over how much of the announced increases the market can absorb.
Buyers assess alternatives: As domestic prices rise, developers and contractors are increasingly evaluating alternative origins. Market sources reported the arrival of a 35,000-40,000 t Chinese rebar cargo, with buyers also testing Saudi material despite logistical and specification hurdles.
Outlook
Scrap fundamentals remain relatively firm on constrained Ramadan supply and steady Pakistan demand. However, widening spreads between domestic rebar and import alternatives could cap further upside if contractor pushback intensifies.
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