en.Wedoany.com Reported - The UAE scrap market continued to face pressure this week, with an oversupply of local scrap combined with weak export demand continuing to suppress domestic prices. Market participants indicated that steel mills are primarily focused on fulfilling existing orders, with limited and cautious purchasing volumes. BigMint's assessment for processed HMS (80:20) stood at AED 1,022 per tonne (USD 278 per tonne) on a DAP Abu Dhabi basis, down AED 16 per tonne (USD 4 per tonne) week-on-week.
An Abu Dhabi-based trader noted that mills are lowering their purchase prices weekly, making the market direction difficult to gauge, with the price decline primarily attributed to excessive supply and virtually no exports. Shredded scrap supply remains tight, with the latest quotes around AED 1,090-1,100 per tonne (USD 297-300 per tonne); PNS prices are near AED 1,050-1,070 per tonne (USD 286-291 per tonne), supported by tightening supply of premium grades and selective buying. LMS prices are approximately AED 800-830 per tonne (USD 218-226 per tonne), super HMS at AED 960-980 per tonne (USD 261-267 per tonne), and processed scrap transactions concluded around AED 1,050-1,070 per tonne (USD 286-291 per tonne). Domestic HMS 80:20 prices on a DAP basis are at AED 940-960 per tonne (USD 256-261 per tonne), with processed HMS largely stable at AED 1,000-1,030 per tonne (USD 272-280 per tonne), reflecting little change in domestic trading sentiment. A Dubai market participant stated that processed HMS remains at AED 1,020-1,030 per tonne (USD 278-280 per tonne), and HMS 80:20 at AED 950-960 per tonne (USD 259-261 per tonne), with some mills still purchasing at these levels, and subsequent prices may fluctuate slightly with purchasing activity.
In the UAE long steel market, billet supply remains constrained, primarily due to high freight costs, extended transit times, and geopolitical uncertainty along regional shipping routes. To address supply chain disruptions and irregular billet arrivals, the UAE recently expanded its list of ECAS-certified suppliers, with Oman's Salalah Steel Industries and Algeria's Algerian Qatari Steel (AQS) now approved to supply billet and rebar to the UAE. A regional trader believes that, at this stage, any newly certified suppliers help buyers diversify their supply chain risks.
At the corporate level, Emsteel delivered robust financial results in the first quarter of 2026, benefiting from improved operational efficiency and cost optimization despite softer steel sales volumes. AGSI continues to advance its low-carbon steel strategy through new sustainable partnerships and the Abu Dhabi rolling mill expansion project, consolidating its position in the UAE's green steel sector.
Looking ahead to the coming days, domestic scrap prices in the UAE are expected to remain weak due to ample local scrap supply and sluggish export demand. However, limited shredded scrap availability and steady mill purchasing at current levels may temporarily prevent a significant price correction. The market anticipates new purchase inquiries next week, but some buyers believe prices could drop by another AED 15-20 per tonne (USD 4-5 per tonne) if export activity remains slow.
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