UAE: Domestic ferrous scrap index sees slight uptick of $3/t w-o-w; exports outlook uncertain
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- Slowed Indian, Pak demand hits UAE export
- Domestic mills drop Nov scrap purchase prices
UAE's domestic ferrous scrap index witnessed a slight uptick of $3/tonne (AED 12/t) w-o-w, increasing by $6/t (AED 23/t) from earlier in the week, followed by a drop of $3/t (AED 12/t). The slowdown in export demand contributed to the price decline towards the weekend.
Market participants are awaiting updates on UAE scrap exports following complaints from UAE steel producers to Indian customs.
"Despite the export duty, scrap is still flowing from Dubai to India. We expected exports to halt, but the trade continues, with BLs and descriptions altered to bypass the restrictions. This raises concerns about the effectiveness of the duty," said a UAE steel producer.
A Sharjah-based scrap supplier commented that the ongoing investigation into UAE scrap exports will continue to pressure domestic suppliers who provide materials to exporters.
Billet market update
In the UAE, billet prices have risen following October deals at $515-520/t CPT, with suppliers now targeting $525-528/t exw.
Iranian-origin billet offers to the UAE have dropped by $3-5/t this week to $470-480/t CFR, equivalent to $458-460/t FOB. However, gas shortages in Iran are expected to push prices to $463-465/t FOB in the next two weeks.
A UAE rebar producer secured 5,000 t of ex-Oman billets at $510-512/t delivered. With the UAE's conformity regulation effective from 27 November, billet buyers are stocking up for December to meet rising rebar demand. Omani company Jindal Shadeed, the UAE's second-largest rebar supplier, has received its ECAS certificate for rebar and billets.
The company also supplies wire rods to the UAE.
Export market: UAE scrap prices are becoming less attractive to Pakistani buyers, as they are $8-10/t higher than offers from the UK, making it difficult for buyers to purchase at such a high price.
HMS (80:20) spread
The average spread between CFR Nhava Sheva HMS (80:20) and UAE local HMS (80:20) processed scrap remained stable at approximately $33-34/t. Imported HMS prices for CFR west coast India declined to $370/t, while UAE processed HMS prices stood at $336/t DAP.
Outlook