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UAE ferrous scrap index remains range-bound as buyers remain muted during holidays

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Melting Scrap

BigMint Bureau

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3 Jan 2025, 19:24 IST

UAE ferrous scrap index remains range-bound as buyers remain muted during holidays

Spread between European and UAE HMS (80:20) remains stable at $37-38/t

Export offers to Qasim for HMS, shredded and fabrication scrap stable

The UAE's domestic ferrous scrap index remained range-bound, with no fresh trades heard over the past few days due to the New Year holidays. Major trading houses and suppliers are on break this week leading to a temporary pause in market activity.

BigMint's benchmark assessment for HMS (80:20) processed scrap stood at AED 1,205-1,210/t ($328-329/t), largely stable as compared to the previous week.

The current workable levels for HMS processed are at AED 1,190-1,200/t ($324-327/t), while for shredded prices are at around AED 1,230-1,240/t ($335-338/t), DAP Abu Dhabi.

BigMint's week 1 market survey reported minimal trade activity after 30 December 2024. Earlier in the week, a 2,000-t HMS processed deal was concluded at AED 1,200-1,210/t ($327-329/t). However, bids dropped toward the middle of the week to AED 1,180-1,190/t ($321-324/t), whereas inquiries for shredded scrap continue to remain weak.

In the past week, UAE scrap prices showed notable fluctuations across grades, with slight increases seen in several categories. LMS prices rose by AED 20-30/t, reaching AED 970-1,000/t ($264-272/t), while HMS (80:20) saw a modest uptick of AED 10-20/t, settling between AED 1,130-1,150/t ($308-313/t). HMS (90:10) (Super) increased by AED 20-30/t to AED 1,180/t ($321/t). Fabrication scrap prices are also rising by AED 20-40/t, reaching AED 1,250-1,300/t ($340-354/t).

Meanwhile, HMS mix and PNS processed remained steady at AED 1,050/t ($286/t) and AED 1,180-1,200/t ($321-327/t), respectively. Sheared/processed HMS saw a range-bound trend, with prices ranging from AED 1,190-1,210/t ($324-329/t).

According to an Abu Dhabi-based trader, the last offer for processed HMS was AED 1,230/t ($335/t). Mills are operating at reduced efficiency, with major mills like AGSI actively purchasing despite the slowdown.

Export market

UAE-origin offers to Pakistan (Qasim) for 500t loading were as follows: HMS at $370/t, HMS Sheared at $370/t, Shredded at $398/t, and Fabrication at $390/t. In the domestic market, UAE prices were reported at $397/t for shredded, $375/t for HMS (80:20), and $390/t for fabrication.

For Bangladesh (Chattogram), Middle East materials have been sold at $365-370/t for HMS and PNS mix materials in last few days. Smaller players in Dhaka are still struggling to secure material restrictions in LC issuance and forex crunch.

HMS (80:20) spread

The average spread between CFR Nhava Sheva HMS (80:20) from Europe and UAE local HMS (80:20) processed scrap remains stable at approximately $37-38/t. Imported HMS prices for CFR west coast of India stood at $365-370/t, while UAE processed HMS prices stood at $327-329/t, DAP Abu Dhabi.

Outlook:

Market activity is expected to pick up in the New Year, with increased prices and trade volumes, driven by a projected recovery in the property sector. This rebound is set to elevate rebar demand as construction and infrastructure projects are set to gain momentum in the coming weeks.