- Mills remain selective, focusing on cost-effective sourcing
- China’s post-holiday return may disrupt steel market stability
The UAE’s domestic ferrous scrap index increased slightly by AED 8/t ($2/t) w-o-w, Activities are slow as not many buyers are active in the market.
BigMint’s benchmark assessment for HMS (80:20) processed scrap was priced at AED 1,201/t ($327/t), reflecting an AED 8/t ($2/t) increase compared to last week’s AED 1,193/t ($325/t).
Local scrap demand remains weak, with limited buying interest for shredded material. However, AGSI continues steady procurement, and suppliers report rising demand from export markets.
Industry sources report stable HMS (80:20) prices at AED 1,110-1,130/t ($306/t) w-o-w, while PNS remains at AED 1,190-1,210/t. HMS processed saw an AED 10-15/t increase to AED 1,180-1,200/t, and fabrication scrap edged up by AED 10/t to AED 1,220-1,240/t at the high end.
Despite sluggish domestic trade, export demand is providing some support to UAE scrap prices. HMS processed is quoted at AED 1,200-1,210/t, while shredded stands at AED 1,250-1,260/t. Among buyers, some are offering the highest rates, keeping the market steady despite limited local purchasing.
As per BigMint’s week 6 market survey, approximately 4,000-5,000 t of processed HMS (80:20) were sold at AED 1,190-1,200/t ($324-327/t) DAP Abu Dhabi.
Last week, other buyers were heard bidding lower at AED 1,175-1,180/t. Shredded offers stand above AED 1,250-1,260/t with low demand.
Export market
The UAE’s scrap export prices remain firm, with shredded offers around $390/t CFR Qasim, followed by HMS at $365/t, fabrication scrap at $385/t, and shredded at $400/t CFR Qasim, reflecting stable-to-moderate demand in South Asia despite limited buying activity.
HMS (80:20) spread
The average spread between CFR Nhava Sheva HMS (80:20) from Europe and UAE local HMS (80:20) processed scrap decreased to approximately $23-25/t from $27-28/t a week ago. Imported HMS prices for CFR west coast of India stood at $350-352/t, while UAE processed HMS prices were at $326-327/t DAP Abu Dhabi.
Middle East HRC market: Mixed trends amid Chinese absence
Indian HRC offers held firm w-o-w at $530/t CFR UAE, with a 5,000-6,000 t deal confirmed. Japanese offers dipped $5/t to $510/t CFR UAE, with a 24,000 t deal reported. The absence of Chinese suppliers due to the Lunar New Year allowed Indian and Japanese mills to secure sales.
Outlook
Infrastructure demand may support prices in the short term, but competition from returning Chinese suppliers could impact momentum. Scrap prices are likely to stay range-bound, depending on market conditions.
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