UAE: Domestic scrap prices rise $3/t w-o-w; Emirates Steel keeps May rebar offers steady
...
- Geopolitical tensions, logistical constraints tighten scrap supply
- Limited cost pass-through squeezes mill margins, curbs scrap demand
Domestic scrap prices in the UAE increased by AED 10/t ($3/t) w-o-w, with HMS processed scrap assessed at AED 1,038-1,040/t ($283/t), supported by tightening supply conditions. Disruptions linked to regional geopolitical tensions, coupled with logistical constraints at Jebel Ali Port and limited billet inflows, have restricted raw material availability.
Domestic scrap (HMS processed) prices were at AED 1,030-1,040/t ($280-283/t), as per a major Abu Dhabi-based mill source, with traders indicating that availability remains tight amid logistical disruptions and subdued material movement.
Buying activity remained subdued, with mills cautious amid weak downstream demand and margin pressure. Higher input costs have been difficult to pass through, leading to limited trade volumes.
The UAE long steel market remained under pressure, with the benchmark producer Emirates Steel (also known as EM Steel) holding May rebar prices steady at AED 2,721/t ($741/t) exw, signalling an effort to stabilise the market despite rising input costs. Mills have largely avoided price hikes, as weak construction demand continues to limit buyer acceptance.
Rebar market activity slowed in April, with bookings easing to around 0.4-0.45 mnt from nearly 0.5 mnt in March, reflecting cautious sentiment and disrupted trade flows. Some re-rollers attempted to raise offers in line with higher costs, but traction has been limited.
Participants noted that margins are increasingly under strain, with a few mills likely to reduce operating rates to around 4550% amid tight raw material availability and subdued demand.
Outlook
BigMint understands that the UAE scrap market is likely to remain firm in the coming days, as supply-side constraints continue to support prices, while subdued downstream demand and cautious buying behaviour are expected to limit any sharp upside.
