- Domestic demand for ferrous scrap holds firm
- Export tags stay range-bound amid tax troubles
The UAE’s domestic ferrous scrap index increased slightly by AED 16/tonne (t) ($4/t) w-o-w amid improved buying activity before the Ramadan holidays.
BigMint’s benchmark assessment for HMS (80:20) processed scrap was at AED 1,217/t ($331/t), reflecting an AED 16/t ($4/t) increase compared to last week’s AED 1,201/t ($327/t).
Domestic demand for ferrous scrap in the UAE was steady, with unprocessed HMS priced at AED 1,180-1,190/t ($321-324/t) and processed HMS at AED 1,220/t ($332/t). Shredded held firm w-o-w at AED 1,300/t ($354/t), while fabrication was traded at AED 1,270-1,280/t ($346-348/t).
Offers for HMS processed were heard at AED 1,230-1,240/t ($335-338/t), while bids were at AED 1,200-1,210/t ($327-329/t).
A trader noted, “Demand for scrap improved slightly, with a few larger mills actively procuring material. Meanwhile, demand in the export market remained low to moderate during the week.”
According to BigMint’s Week 7 market survey, around 5,000-5,500 t of processed HMS (80:20) and shredded were traded. HMS was traded at AED 1,210-1230/t ($332-335/t) and shredded at AED 1,300-1,320/t ($354-359/t) DAP Abu Dhabi.
Export market
The UAE’s scrap export prices remained range-bound, with the lack of a refund of VAT by the UAE government adding cost pressures for exporters. Demand remained moderate in South Asia, with limited buying activity.
Offers to Pakistan for HMS (80:20) originating from the UAE were at $370-375/t, while shredded was offered at $390-395/t. UAE-origin fabrication was at $380-385/t, CFR Qasim.
Bangladesh’s imported scrap market saw a slight improvement, as some buyers returned, though overall sentiment remained cautious. Letter of credit (LC) issuance challenges persisted but were less severe than in previous months. Inquiries for UAE material remained on the lower side.
HMS (80:20) spread
The average spread between CFR Nhava Sheva HMS (80:20) from Europe and UAE local processed HMS (80:20) decreased to approximately $20-22/t from $23-25/t a week ago. Imported HMS prices for CFR west coast of India stood at $350-352/t, while UAE processed HMS prices were at $330-332/t DAP Abu Dhabi.
UAE HRC market
India’s hot-rolled coil (HRC) (SAE1006) export index for the Middle East remained stable w-o-w, while Chinese offers dropped by $5/t to $500-505/t CFR UAE post-Lunar New Year. Indian HRC offers held at $525-530/t CFR despite sluggish demand and volatile SHFE futures, as European exports faced challenges from ongoing anti-dumping investigations.
Outlook
Infrastructure demand may support prices in the short term, with scrap tags expected to stay range-bound based on market conditions. Additionally, buying activity is expected to improve as part of restocking ahead of Ramadan.
Article From bigmint
