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UAE: Domestic scrap index rises by $4/t w-o-w; benchmark mill hikes rebar prices by $14/t

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Melting Scrap

BigMint Bureau

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22 Nov 2024, 20:38 IST

UAE: Domestic scrap index rises by $4/t w-o-w; benchmark mill hikes rebar prices by $14/t

EMSteel's recent rebar price revision aligns with market expectations

Exports stay weak, especially to Pak, Bangladesh

Prices of processed HMS (80:20) in the UAE increased by AED 15/tonne (t) ($4/t) w-o-w, as Emirates Steel (EMSTEEL), a key mill, hiked its list prices for rebars by AED 50/t ($14/t) for December sales.

Prices of HMS (80:20) processed moved in a narrow range throughout the week (AED 1,247-1,276/t or $340-347/t), recording a drop initially. Later on, prices rose, with tags finally settling at AED 1,276/t ($347/t) at the end of the week, up by AED 15/t ($4/t) w-o-w, as per BigMint's bi-weekly assessment. Prices have trended up for two weeks in a row.

Around 8,000-10,000 t of HMS (80:20) processed were sold at AED 1,260-1,275/t ($343-347/t) on a DAP Abu Dhabi basis, as per BigMint's week 47 market survey.

Market scenario

Local scrap prices fluctuated in the last few weeks, influenced by volatility in the production rates and scrap demand of major steel mills. Prices varied from a low of AED 1,223/t ($333/t) to a high of AED 1,285/t ($350/t).

According to market sources, Emirates Steel increased its domestic rebar prices for December sales by AED 50/t ($14/t) to AED 2,602/t ($709/t).

Earlier this week a Dubai-based trader stated, "EMSTEEL, the benchmark mill for rebar prices, is likely to announce new prices this week. Meanwhile, other mills await clearer market direction. Current scrap values are not that favourable. HMS processed is ideal at AED 1,250-1,260/t ($340-343/t), with unprocessed HMS at AED 1,190-1,200/t ($324-327/t)."

A Sharjah-based supplier stated, "We are staying away from offers over AED 1,300/t ($354/t); our last quote was at AED 1,290/t ($351/t), but interest is now at around AED 1,270/t ($346/t). For shredded, offers at AED 1,300-1,310/t ($354-357/t) received no interest. The export market is slightly weak, especially with regard to Pakistan and Bangladesh. Additionally, domestic material availability is strong, but the overall flow remains moderate to slow compared to the first week of November when the market was active at AED 1,270-1,280/t ($346-348/t) levels."

"Demand remains weak in both the domestic and export markets. Currently, processed HMS is being offered at AED 1,250-1,260/t ($340-343/t), while shredded is at AED 1,290-1,300/t ($351-354/t)," noted a UAE-based supplier.

Another Sharjah-based trader commented, "The domestic market is picking up, with over 10,000 t of scrap sold recently. We are offering processed HMS(80:20) at AED 1,300/t ($354/t), aligned with shredded levels, though demand for shredded remains comparatively weaker."

Commenting on the export market, the supplier stated, "UAE HMS is trading at $370/t CFR Qasim and $375/t CFR Chattogram, but no firm offers were heard for India."

HMS (80:20) spread

The average spread between HMS (80:20) CFR Nhava Sheva and UAE local HMS (80:20) processed scrap narrowed to approximately $16-18/t. Imported HMS prices for India declined to $363/t CFR west coast, while UAE-origin processed HMS prices rose to $347/t DAP.

As per market reports, Emirati buyers are showing more interest in hot-rolled coil (HRC) imports, with a preference for Chinese, Japanese, and Taiwanese materials due to attractive offers.

Outlook

Domestic scrap prices from major mills may remain steady, with the market expected to improve in December. Recent rebar price revision by the benchmark mill is likely to provide further clarity on the market direction.