Scrap prices in UAE remain under pressure amid oversupply and limited bookings
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- Weak export demand continues weighing on local scrap sentiment
- Mills maintain cautious buying amid comfortable scrap availability
The UAE's ferrous scrap market remained under pressure during the week, as excessive local scrap availability and weak export demand weighed on domestic prices. Market participants noted that mills were largely purchasing limited quantities while fulfilling pending orders, keeping overall buying activity cautious. BigMint assessed HMS (80:20) processed at AED 1,022/t ($278/t) DAP Abu Dhabi, down sharply by AED 16/t ($4/t) w-o-w.
Market comments
Market participants noted that prices have been gradually softening over recent weeks, although the pace of decline remained relatively moderate as some mills continued procuring material at current workable levels.
An Abu Dhabi-based trader said: "Every week they (mills) are reducing purchase prices, so it is becoming difficult to get a clear market direction. Prices are going down mainly because supply is excessive and there are almost no exports."
Shredded scrap availability continued to remain limited, with latest offers heard around AED 1,090-1,100/t ($297-300/t). PNS prices were reported near AED 1,050-1,070/t ($286-291/t), supported by relatively tighter supply and selective buying interest for premium grades.
Meanwhile, LMS prices were heard around AED 800-830/t ($218-226/t), HMS Super near AED 960-980/t ($261-267/t), while fabrication scrap traded around AED 1,050-1,070/t ($286-291/t).
Domestic HMS 80:20 prices in the UAE were heard around AED 940-960/t ($256-261/t) DAP during the week, while processed HMS remained largely stable near AED 1,000-1,030/t ($272-280/t), reflecting mostly unchanged domestic trading sentiment.
A Dubai-based participant commented: "The domestic market trade levels are still largely unchanged from last week. Processed HMS remains around AED 1,020-1,030/t ($278-280/t), while HMS 80:20 is near AED 950-960/t ($259-261/t). Some mills are still buying at these levels, although prices could shift slightly depending on buying activity in the coming days."
Meanwhile, the UAE long steel market continued operating under constrained billet supply conditions, as elevated freight costs, longer transit times, and ongoing geopolitical uncertainty across regional shipping routes continued affecting procurement planning.
Industry participants noted that the UAE has recently expanded its ECAS-certified supplier base, with Oman's Salalah Steel Industries and Algeria's Algerian Qatari Steel (AQS) receiving approvals to supply billet and rebar products into the UAE market. Market participants said the move could help diversify semis sourcing options amid ongoing supply-chain disruptions and irregular billet arrivals.
A regional trader commented: "Any additional approved supplier is positive for the market at the current stage, because buyers are trying to diversify supply chains as much as possible."
On the corporate side, Emsteel reported resilient Q1 2026 financial results despite softer steel sales volumes, supported by improved operational efficiency and disciplined cost optimisation. At the same time, AGSI continued expanding its low-carbon steel strategy through new sustainability partnerships and rolling mill expansion projects in Abu Dhabi, further strengthening its position within the UAE's green steel segment.
Outlook
UAE domestic scrap prices are expected to remain soft in the coming days, as comfortable local scrap availability and weak export demand continue weighing on market sentiment. However, limited shredded scrap availability and steady mill buying at current levels are likely to prevent any major price correction immediately. Market participants expect fresh purchase enquiries to emerge next week, although some buyers still anticipate a further reduction of around AED 15-20/t ($4-5/t) if export activity remains slow.
