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UAE: Ferrous scrap index rises by $5/t w-o-w; mills remain cautious about end-user demand

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Melting Scrap

BigMint Bureau

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10 Jan 2025, 15:32 IST

UAE: Ferrous scrap index rises by $5/t w-o-w; mills remain cautious about end-user demand

Scrap suppliers expect fresh orders from mid-Jan'25

Bangladeshi buyers show interest as LC openings ease

The UAE's domestic ferrous scrap index increased by AED 20/t ($5/t), with some fresh trades heard over the past few days.

However, local scrap trading activity in the UAE remained slow, as suppliers waited for new orders, expected in mid-January. Mills were also cautious about purchasing scrap, as they were uncertain whether end-user demand would improve.

As per participants, LMS workable prices decreased by AED 20-30/t ($5-8/t)w-o-w to AED 910-930/t ($247-253), while HMS (80:20) dropped by AED 10-20/t ($2-5/t) w-o-w to AED 1,130-1,150/t ($308-313). HMS (90:10) saw a slight reduction of AED 15-20/t w-o-w to AED 1,160-1,170/t ($316-318).

HMS processed increased slightly by AED 10-20/t ($2-5/t) w-o-w to AED 1,220/t ($332). For fabrication, prices ranged within AED 1,280-1,290/t in Abu Dhabi.

As per BigMint's Week 2 market survey, approximately 6,000 t of processed HMS (80:20) were sold at AED 1,225-1,250/t ($333-340/t) on a DAP Abu Dhabi basis.

Domestic HMS processed scrap was offered at AED 1,240-1,250/t ($338-340/t), while shredded was at AED 1,300/t ($354/t).

Workable levels for HMS processed were at AED 1,180-1,200/t ($321-327/t), while shredded prices were at around AED 1,240-1,250/t ($335-338/t) DAP Abu Dhabi.

HMS (80:20) spread

The average spread between CFR Nhava Sheva HMS (80:20) from Europe and UAE local HMS (80:20) processed scrap narrowed to approximately $24-25/t from $37-38/t a week ago. Imported HMS prices for CFR west coast of India stood at $358-360/t, while UAE processed HMS prices were at $334-335/t DAP Abu Dhabi.

Export market

UAE's offers to Pakistan (Qasim) were at $365-370/t for HMS, $370-375/t for HMS sheared, $395-400/t for shredded, and $390-394/t for fabrication.

For Bangladesh (Chattogram), Middle East scrap was recently offered at $370-372/t for a mix of HMS and PNS. Smaller players in Dhaka showed moderate activity, as banks eased letter of credit (LC) openings this week, providing some security for buyers.

UAE HRC market update

Emirati buyers continued to delay hot-rolled coil (HRC) imports despite a recent decline in prices. This hesitation was driven by sluggish end-user demand in the local market and expectations of further price drops.

The Middle East steel market experienced a notable reduction in imported hot-rolled coil (HRC) offers from China, which put pressure on prices from other exporters. Chinese offers fell by $10-15/t w-o-w to $500-505/t CFR UAE from $515-520/t. This decline was largely due to slow trading activity in the region.

Meanwhile, India's HRC export offers to the Middle East remained stable w-o-w at around $535/t CFR UAE, though trade was subdued due to competitive Chinese pricing.

Outlook

Prices are expected to remain range-bound, with a slight drop expected in the coming days. However, as infrastructure projects gain momentum in the weeks ahead, the market may stabilise.