BigMint is a Market Intelligence and Price Reporting firm that caters to the data and analytics requirements of businesses in the commodities sector. It publishes real time prices and information, which is impartial, independent and reliable, sourced from all industry interfaces – sellers, buyers, agents and traders. This data is filtered and passed through very stringent, calculative assessments before final prices are derived, thereby giving our clients accurate pricing.

Go to List

UAE: Domestic ferrous scrap prices rise $6/t w-o-w on moderate trade enquiries

...

Melting Scrap

BigMint Bureau

219 Reads

1 Mar 2024, 19:33 IST

UAE: Domestic ferrous scrap prices rise $6/t w-o-w on moderate trade enquiries

This week, scrap prices in the UAE witnessed a slight recovery after a recent decline, stimulating moderate activity. However, the majority of mills continued to lower their scrap purchase prices in response to duty imposition following better raw material availability and subdued demand in the finished steel market.

According to BigMint's week 09 market survey, shredded scrap bids and workable prices ranged from AED 1280-1300/t, while HMS (80:20) processed was assessed at AED 1,200-1,215/t DAP Abu Dhabi. Abu Dhabi-and Sharjah-based mills have completed around 8,000 t bookings so far, with prices ranging from AED 1200-1250/t (HMS sheared/processed) and AED 1300-1320/t (shredded) on a DAP basis.

SteelMint's biweekly assessment showed an AED 22-24/t($6/t) slight uptick for HMS (80:20) processed scrap grade, maintaining a price range of AED 1,210-1,215/t ($329-331/t) DAP.

Market insiders anticipate new steel plants opening in 2025, driving demand for materials if prices remain supportive.

Price trends and breakdown

The current purchase price for HMS (80:20) stood at AED 1,180-1,200/t from mills, with transportation costs adding AED 45-50/t for a DAP price of AED 1,245-1,250/t. The majority of mills are not issuing new purchase orders but loading for old bookings are going on.

Another trader from Sharjah said, "In Sharjah, scrap prices fluctuated between AED 1,050-1,150/t for unprocessed and processed HMS due to duty issues, with mills adjusting bid prices according to their requirements."

As per a supplier source, the current price trend is AED 1,080-1,100/t for unprocessed HMS DAP Abu Dhabi, AED 1,190-1,200/t for processed HMS, and AED 1280-1320/t for shredded on a DAP basis.

HMS (80:20) spread: The average spread between the CFR Nhava Sheva HMS (80:20) and UAE local HMS (80:20) processed scrap declined to $55-58/t,following the moderate recovery trend in domestic scrap prices. Imported HMS (80:20) prices, CFR west coast India, remained slightly downward at $385-390/t, while UAE HMS (80:20) processed scrap prices remained at $328-330/t DAP.

The UAE benchmark mill maintained stable wire rod prices for March. For instance, Emirates Steel Arkan set AISI/SAE 1006 to 1018 grade wire rods at AED 2,424/t ($659/t) CPT UAE, unchanged from February. Other mills, such as Fujairah-based and Qatar Steel FZE, have yet to announce their prices. Imports are putting pressure on prices, with deals possibly reaching $590-610/t delivered. Prices exclude 5% VAT.

According to a market insider, Emirates Steel is anticipated to lower rebar offers and may further decrease scrap purchase prices, reflecting cautious market sentiments.

In the scrap export market survey, the majority of trades were recorded for Bangladesh and Pakistan, indicative of Bangladesh in HMS 1 and PNS mix at $435-440/t on a CFR Chattogram basis. A couple of PNS deals are heard at $445/t with a 2,000 t volume on a CFR Chattogram basis, followed by a 1000 t PNS scrap deal concluded at $420/t on a CFR Qasim basis.

Outlook: The UAE's domestic scrap prices are expected to experience a range-bound trend as market participants are anticipated to witness a drop in purchase prices from mills, contributing to the subdued outlook in the domestic scrap market.