en.Wedoany.com Reported - In the week ending June 26, 2026, the UAE domestic scrap steel market prices edged lower. BigMint assessed HMS (80:20) processed scrap at AED 1,035/tonne ($282/tonne) DAP Abu Dhabi, down AED 3/tonne ($1/tonne) week-on-week. Market purchasing activity was sluggish, with demand-based procurement by steel mills offsetting the positive sentiment from the UAE's tightened scrap export policy.
The indicative domestic scrap price assessment showed LMS at AED 740-780/tonne ($201-212/tonne), HMS (80:20) at AED 900-910/tonne ($245-248/tonne), processed HMS (80:20) at AED 1,030-1,035/tonne ($280-282/tonne), processed PNS at AED 1,030-1,050/tonne ($280-286/tonne), and processed scrap at AED 1,020-1,070/tonne ($277-291/tonne).
A key development during the week was the UAE's formal implementation of a temporary export ban on ferrous, aluminum, and copper scrap, effective from June 10, 2026, to October 8, 2026. This measure builds on previous initiatives, including an AED 400/tonne ($109/tonne) export tax on ferrous scrap and a reverse VAT mechanism. Market participants expect the policy to gradually improve raw material supply and enhance feedstock security for local electric arc furnace steel mills. However, traders noted that previous restrictions did not fully halt exports, and the actual impact will depend on the implementation of exemptions.
The UAE's temporary scrap export ban also dampened sentiment in Pakistan's imported scrap market. Market participants had anticipated a gradual recovery in purchasing activity as geopolitical tensions in the Middle East eased. However, the latest export restrictions have raised concerns about raw material supply, as the UAE remains one of Pakistan's primary sources of ferrous scrap. Purchasing activity in Pakistan was subdued during the week, with some buyers worried about supply tightening, but previous restrictions did not completely disrupt trade flows, and the market is closely watching whether exemptions will allow continued shipments.
In the finished steel sector, a benchmark UAE mill raised July rebar prices by AED 100/tonne ($27/tonne) to AED 2,921/tonne ($795/tonne) exw, as regional producers adopted a more bullish pricing strategy. An integrated Omani producer subsequently raised its July offer to around AED 2,900-2,910/tonne ($789-792/tonne) CPT UAE, with other mills also announcing similar price levels. However, buyer acceptance was cautious, with retail rebar prices rising only AED 35-40/tonne ($10-11/tonne) to around AED 3,070-3,100/tonne ($836-843/tonne) DAP, far below the mill increases, due to ample distributor inventories, cautious project procurement, and ongoing volume-price competition.
Overall, the UAE market fundamentals were mixed during the week. Government policies are expected to enhance domestic scrap supply and improve long-term feedstock security for steel mills, but sluggish scrap procurement and cautious downstream steel demand suggest that producers' ability to sustain higher rebar prices will depend on stronger construction activity and increased purchasing interest during the July sales cycle.
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