UAE: Domestic scrap index inches down w-o-w amid moderate market activities

• Buyers hold off on fresh bookings amid high inventories
  
  
• UAE exporters stay active amid steady overseas demand
  
  

BigMints UAE domestic processed HMS index dipped by AED 4/tonne (t) ($1/t) w-o-w to AED 1,223/t ($333/t), amid moderate trade activities. Overall, the market was slow with a tight scrap supply. However, most buyers stayed on the sidelines this week, holding off on fresh bookings due to high inventories, while the dispatch of previous orders continued.

Local scrap prices in the UAE remained mostly stable this week, with selective gains in some grades. Additionally, scrap exports to India picked up pace on the back of rising demand, pushing up prices for select grades such as fabrication and PNS.

Market commentary

Fabrication scrap prices increased to AED 1,240-1,270/t ($338-346/t), with tags for the higher grades up by AED 10-15/t ($3-4/t) w-o-w.

LMS grade (pure and mixed) was steady w-o-w at AED 900-1,100/t ($245-300/t), and HMS 80:20 held at AED 1,150-1,175/t ($313-320/t), with slightly better demand for higher grades.

A UAE-based mill-side source stated that they recently procured 500 t of LMS mixed at AED 850/t ($231/t) and were considering reducing their purchasing prices to AED 825-830/t ($224-226/t) DAP this week.

Meanwhile, rebar end-cuts edged down by AED 10-15/t ($3-4/t) w-o-w to AED 1,300-1,310/t ($354-357/t).

A UAE-based re-roller shared that they booked two 50,000-t cargoes of 150 mm 4sp billets last week, aiming for $462/t CFR, while Emirates Conformity Assessment Scheme (ECAS) certified billet offers were seen at $460-465/t CFR Hamriyah. On scrap, they noted the purchasing levels for processed HMS at AED 1,220-1,230/t DAP.

Export market scenario

UAE-based exporters were quite active in the market amid steady demand from regions such as India and Pakistan.

However, Pakistani deals were impacted by rising freight. A Pakistan-based scrap importer noted that freight costs rose by an additional $15/t due to rerouted container movement. From normal offers, we are facing extra charges, as containers now have to go to Sri Lanka first, then to Pakistan, he explained. This shift follows Indias directive banning any vessel from anchoring at its ports if it first stops in Pakistan. As a result, ships were being re-routed via Sri Lanka, where cargo is offloaded before being sent to Karachi via shuttle service - a process similar to past instances where Pakistan-bound cargo was dropped at UAE's Jebel Ali for onward transfer.

He also shared that current offers for UAE-origin shredded (Rukn material) were at $392/t CFR Qasim, while HMS was quoted at $366/t CFR Qasim.

HMS (80:20) spread

The average spread between HMS 80:20 from Europe and the UAE's processed HMS 80:20 inched down w-o-w to approximately $16-17/t CFR Nhava Sheva. Prices of imported HMS on the west coast of India stood at $350-352/t CFR, while the UAE's processed HMS tags were at $332-333/t DAP Abu Dhabi.

As per market insiders, Emirates Steel has rolled over its rebar offers for June 2025 deliveries, with prices holding at around $722/t (AED 2,652/t) exw-Abu Dhabi.

Outlook

The UAE scrap market may see a moderate price uptick next week, supported by renewed buying interest from India and a firm pricing trend in Turkiye, the key global driver. With overseas demand holding steady, UAE exporters are likely to remain active, which could provide additional support to domestic prices in the near term.