UAE: Processed scrap prices decline amid Eid holidays; higher rebar offers support market sentiment

• Rebar suppliers raise June offers despite easing procurement urgency
  
  
• Scrap demand slows amid comfortable inventories
  
  

The UAE ferrous scrap market softened this week (week ending on 29 May) as trading activity slowed ahead of the Eid holidays. BigMint assessed HMS (80:20) processed scrap at AED 900/t ($270/t) DAP Abu Dhabi, down AED 10/t ($3/t) w-o-w. Market activity remained limited, with most GCC participants away from the market for the holiday period. Trading is expected to resume on Monday (1 Jun'26).

Despite the correction in scrap prices, sentiment across the steel value chain remained relatively firm as regional rebar producers pushed June offers higher. Market participants noted that the decline in processed scrap prices was primarily driven by subdued spot activity and better availability rather than any significant deterioration in steel market fundamentals.

Higher rebar offers lend support

Following the latest pricing announcement from the UAE benchmark producer, regional suppliers increased June rebar offers. An Omani integrated mill raised offers to AED 2,800-2,810/t ($756-759/t) CPT UAE, up around AED 75/t ($20/t) from the previous sales round, while a Qatar-linked supplier announced similar levels.

Current retail rebar prices are estimated at around AED 2,950/t ($797/t) delivered for the benchmark producer and AED 2,900-2,920/t ($783-788/t) for other brands. However, market participants reported that buyers have become less aggressive compared with the supply shortages witnessed several weeks ago.

"Contractors were chasing material aggressively earlier, but inventories are now much healthier and purchases are mostly requirement-based," a trader said.

Inventory recovery weighs on scrap demand

Higher rebar prices continue to support overall market sentiment. However, improved steel availability and healthier inventories at contractors and traders have reduced the urgency for fresh scrap purchases. As a result, scrap buying remained largely need-based. Despite the correction, market participants do not expect a sharp fall in scrap prices as steel prices remain firm.

Industrial expansion to support future scrap consumption

The UAE continues to expand its steelmaking footprint under the "Make it in the Emirates" programme. Recent investments in Umm Al Quwain by CIM Steel Industry, Rhino Steel Industries and Metal Care Center (MCC) will add nearly 1 million tpy of steelmaking and processing capacity across scrap-based steelmaking, rebar rolling, cold rolling and coated steel production.

Industry participants believe these projects will gradually increase domestic scrap consumption and strengthen the UAE's position as a regional steel manufacturing hub.

Outlook

Processed scrap prices may remain under mild pressure in the short term amid holiday-thinned trading and improved steel inventories. However, firm rebar prices, ongoing stable steel production levels are expected to provide underlying support to the UAE scrap market once trading activity resumes after the Eid holidays.