UAE: Ferrous scrap prices rise $7/t w-o-w amid active export activities

This week, domestic scrap prices in the UAE remained slightly higher as export markets were active with frequent deals seen into Bangladesh and Pakistan.

According to a representative of a major trading house, local supply conditions have improved with mills maintaining steady purchases. Unprocessed HMS (80:20) was offered at AED 1,330-1,340/t while processed varieties were quoted at AED 1,360-1,370/t DAP.

In contrast, another trader said the market was slow with minimal buying activity except by the mills. Post-Eid, there is expected demand suggesting that volumes may increase next week.

BigMint's market survey for week 26 witnessed bookings of 7,000 t of HMS (80:20) processed, shredded, and end cut at prices ranging from AED 1,370-1,400/t to 1450-1500 AED/t DAP in Abu Dhabi."

"Indicative mill prices show HMS processed at approximately AED 1,400/t, shredded at AED 1,500/t, and end cut at AED 1,500/t DAP in Abu Dhabi. In contrast, current market prices indicate HMS processed at AED 1,330-1,340/t and shredded at AED 1,440-1,450/t

BigMint's bi-weekly assessment increased by AED 24/t ($7/t) for HMS (80:20) processed, maintaining a price range of AED 1,340-1,345/t ($364-366/t) DAP Abu Dhabi.

HMS spread: The average spread between the CFR Nhava Sheva HMS (80:20) and UAE local HMS (80:20) processed scrap decreased to $27-30/t following the increase in domestic HMS (80:20) processed prices in the UAE. Imported HMS (80:20) prices (CFR west coast India) hovered at $388-390/t, while UAE HMS (80:20) processed prices were at $364-366/t DAP.

In the export market, multiple deals were reported into Bangladesh and Pakistan due to quick shipments and competitive pricing. Current freight rates from Hong Kong are at $3,800-$4,000 per container. Similarly, from the UAE freight rates are slightly lower, according to market participants. UAE-origin scrap continues to be highly regarded for its premium quality.

Recent trades:

2,000 t of HMS-PNS mix booked from UAE at $420/t CFR Chattogram.

1,000 t of UAE HMS mix PNS sold at $435/t CFR Chattogram.

700 t of UAE Blue steel sold at $455/t CFR Chattogram.

Emirates Steel Arkan has been recognised by the World Economic Forum as one of the top five global steel producers for its efforts in decarbonising steel production. The company is noted for its innovation and sustainability, including CO2 capture and the first green hydrogen-based steel pilot project in the MENA region. ESA focuses on circular economy, energy efficiency, clean energy adoption, value chain sustainability, and innovation to reduce the industry's environmental impact, aligning with the UAE's net-zero emissions vision.

Outlook: The UAE's scrap market is likely to see prices hover at slightly higher levels due to firm export activities which might just trigger short-term shortage in the market.