- Rebar market stable despite seasonal demand slowdown
- UAE mills secure HRC from India, Japan and China
The UAE’s domestic ferrous scrap index declined by AED 16/t ($4/t) w-o-w, after an initial rise followed by a mid-week dip due to sluggish mill demand amid the Ramadan slowdown. Trades were recorded at AED 1,190-1,200/t ($324-327/t), but market activity weakened as Ramadan progressed.
BigMint’s benchmark assessment for processed HMS 80:20 stood at AED 1,191/t ($324/t), up AED 16/t ($4/t) from last week’s AED 1,207/t ($320/t) DAP Abu Dhabi.
According to BigMint’s Week 11 market survey, around 5,000-5,500 t of processed HMS 80:20 and shredded were traded. HMS was traded at AED 1,190-1,200/t ($324-327/t) and shredded at AED 1,260-1,270/t ($343-346/t) DAP Abu Dhabi.
“The local scrap market in the UAE remains under pressure. Apart from routine buys from major mills, inquiries are slow, and smaller mills have scaled back purchases. HMS processed is trading at AED 1,190-1,200/t ($324-327/t), while shredded is at AED 1,250-1,260/t ($340-343/t) DAP Abu Dhabi. Even small-scale buyers are keeping bids AED 10-15/t ($3-4/t) below these levels,” a Sharjah-based trader said.
A UAE-based yard representative said, “Local yards are securing processed HMS at AED 1,100-1,120/t ($300-305/t), with freight adding AED 30-35/t ($8-10/t), bringing DAP Abu Dhabi levels to AED 1,150-1,160/t ($313-316/t). Premium yards are willing to pay up to AED 1,160-1,170/t ($316-319/t), while standard yards remain around AED 1,100-1,110/t ($300-303/t). Trading houses are offering material at AED 1,190-1,200/t ($324-327/t). ESI typically buys at a premium of AED 20-30/t ($5-8/t) over market rates.”
HMS (80:20) spread
The average spread between HMS 80:20 from Europe and the UAE processed HMS 80:20 widened to approximately $34-35/t CFR Nhava Sheva from $26-27/t a week ago. Imported HMS prices for CFR west coast of India stood at $355-360/t, while UAE processed HMS prices were at $322-324/t DAP Abu Dhabi.
Export market
“Pakistan’s ferrous scrap market remains slow, with limited buying interest. From the UAE, HMS/PNS mix is moving at around $355-360/t. Shredded was last heard at $385/t from the UAE, while the UK/EU suppliers are reportedly asking around $382/t. Overall, buyers are hesitant, keeping the market subdued,” said a UAE-based scrap exporter.
The UAE rebar market‘s selling campaign has concluded, with suppliers meeting their quotas despite a seasonal slowdown. Second-tier mills faced challenges, with recent deals finalised at AED 2,250-2,280/t ($613-621/t) on a 90-day LC. The average price softened by AED 20/t ($5/t) to AED 2,265/t ($622/t) delivered.
Retail prices also declined, with second-tier rebar at AED 2,350/t ($640/t) and benchmark mill rebar at AED 2,480/t ($675/t), both on a 90-day LC. Despite minor corrections, demand remains stable, with monthly consumption exceeding 400,000 t, supported by a resilient construction sector. Prices exclude 5% VAT.
UAE books Indian, Japanese & Chinese HRC
After a brief pause, the UAE HRC market saw sizeable bookings as re-rollers, pipe manufacturers, and stockists replenished inventories.
A major Indian steel mill sold 40,000 t of HRC for March-April shipments at $515-520/t CFR, with 30,000 t for re-rolling and 10,000 t for pipe-making. From Japan, UAE secured a 25,000-28,000 t deal for May shipment at $510/t CFR. Meanwhile, Chinese HRC bookings ranged from $490-510/t CFR for April shipment.
While these procurements hint at price stabilisation, market uncertainty persists amid speculation over China’s production policies.
Outlook
The UAE’s domestic scrap market is set to remain range-bound during Ramadan, with dull demand and cautious sales keeping activity limited. However, a rebound after Ramadan could support price recovery.
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