UAE: Ferrous scrap price firms on regional demand; logistics remain a concern

• Processed HMS scrap rises w-o-w despite a stable domestic market
  
  
• High freight costs limit ferrous scrap export opportunities
  
  

The UAE ferrous scrap market remained firm the week ending on 12 Jun'26, supported by improving regional sentiment and ongoing supply chain challenges, although domestic trading activity was largely stable. BigMint assessed HMS (80:20) processed scrap at AED 1,027/t ($280/t) DAP Abu Dhabi, up AED 25/t ($7/t) w-o-w.

Market participants reported that local scrap prices remained largely firm. HMS 80:20 processed scrap continued to trade at AED 990-1,020/t ($267-275/t) DAP. Delivered prices, excluding 5% VAT and payable within one week, remained stable across major grades. LMS was assessed at AED 740-750/t ($200-203/t), HMS Super at AED 950-980/t ($257-265/t), PNS processed and fabrication scrap at AED 1,050-1,070/t ($284-289/t), while end-cuts, mainly rebar scrap, were heard at AED 1,130-1,140/t ($305-308/t).

A trader based in Dubai noted, "Domestic scrap availability is sufficient, and workable prices have remained largely rangebound for fresh interest. However, suppliers are reluctant to reduce offers because logistics and transportation costs continue to stay elevated."

A UAE-based trader noted, "Export activity remains limited as container freight costs are currently around AED 450-500/t ($122-135/t), which has significantly reduced the competitiveness of UAE-origin scrap in export markets."

Market sources reported a 500 t cargo of UAE-origin HMS sold at $420/t CFR Qasim. Although elevated logistics costs continue to weigh on exports, enquiries from Pakistan have remained selective.

Logistics challenges dominate UAE steel market

Logistics remain the key concern in the UAE flat steel market, with market participants focusing more on cargo movement than price trends. Despite ongoing disruptions, fresh material continues to arrive. More than 40,000 t of Russian-origin HRC has reportedly been booked for shipment to the UAE, while around 16,000 t of Indian-origin HRC is expected to reach Fujairah in the second half of June. The Indian cargo was reportedly booked at around $560/t FOB, although the deal could not be independently confirmed.

A Dubai-based trader noted, "Buyers are more concerned about when cargoes will arrive than where prices are moving. Delays across shipping routes and ports are making delivery schedules increasingly uncertain."

Market participants estimate that significant steel volumes destined for GCC countries remain delayed at sea or waiting at regional ports. In response, Fujairah is gaining importance as an alternative entry point, with additional storage and handling facilities being developed to ease supply chain bottlenecks. Meanwhile, Indian-origin HRC offers were heard at around $700/t CFR Jebel Ali, reflecting not only steel values but also higher freight costs and logistical risks.

Regional developments support sentiment

Market participants noted that stronger scrap demand in neighbouring Saudi Arabia is indirectly supporting sentiment across the Gulf region. Saudi steelmakers recently raised domestic scrap purchase prices for the second time this month, with premium scrap reaching SAR 1,930/t ($515/t), shredded scrap at SAR 1,925/t ($513/t), and HMS at SAR 1,860/t ($496/t) amid tightening supply conditions. The cumulative increase since early June has reached approximately SAR 200/t ($53/t), encouraging suppliers across the region to maintain firm offer levels and increasing interest in imported scrap cargoes.

Outlook

The UAE scrap market is expected to remain firm, supported by logistics-related constraints and elevated freight costs. Market participants will closely monitor cargo arrivals and port operations, while need-based buying is likely to keep trading activity measured. Demand from regional destinations, including Pakistan, may continue to support sentiment, although high freight costs remain a challenge for export competitiveness.