en.Wedoany.com Reported - The UAE domestic scrap market softened in the latest trades, with spot prices down by AED 10-30/t ($3-8/t) week-on-week. BigMint's assessed UAE domestic HMS processed index fell by AED 2/t ($1/t) WoW to AED 1,028/t ($279/t), DAP Abu Dhabi.
A recent deal for 1,000t of processed HMS was concluded at AED 1,025/t ($279/t), with current offers slightly higher at AED 1,040-1,050/t ($283-286/t). A trader noted, "Buying interest slowed after bookings last week, but mills are still testing lower offers due to ample scrap inflows." Another participant added, "Buyers are cautious at current levels, preferring to purchase as needed." Shredded scrap offers were heard at AED 1,120-1,130/t ($305-308/t), indicating that replacement costs remain firm despite the UAE scrap price adjustment.
The UAE rebar market continues to show strong activity, supported by contractor-led buying. However, this demand is primarily driven by stockpiling amid concerns over supply disruptions and logistical constraints. UAE rebar demand for April is estimated at around 400,000 tonnes, although nearly 100,000 tonnes are expected to be shifted to May, suggesting effective consumption is closer to 320,000-350,000 tonnes.
Retail rebar prices are currently AED 2,800-2,900/t ($762-790/t) delivered, with mill offers at AED 2,650-2,700/t ($721-735/t). Imports from Oman and Qatar remain competitive at AED 2,650-2,670/t ($721-727/t). If scrap inflows improve and demand weakens, mills could face margin pressure, potentially leading to price reductions for both UAE rebar and scrap. Rebar supply is expected to improve before mid-summer, possibly reaching 500,000 tonnes, while demand could fall below 400,000 tonnes. This could put pressure on steel and scrap prices, especially if inventories remain high. On the scrap side, improved supply could ease domestic price support and narrow replacement cost pressure, particularly if buying slows after the current stockpiling phase.
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