en.Wedoany.com Reported - The UAE scrap steel market continues to weaken, with buyers anticipating increased domestic supply and potential further price corrections following the government's temporary ban on ferrous and non-ferrous scrap exports, leading to subdued purchasing activity. BigMint assessed processed HMS (80:20) scrap at a DAP price of AED 1,000/ton ($272/ton) in Abu Dhabi, down AED 35/ton ($10/ton) week-on-week. During the week ending July 3, most market participants adopted a wait-and-see approach. Several steel mills issued inquiries last week, with DAP offers for HMS scrap at AED 900-950/ton ($245-259/ton), but most mills refrained from new purchases due to ample inventories and expectations of price declines. Offers for processed HMS remained around AED 1,000/ton ($272/ton) DAP, but transactions were limited.
A UAE scrap processor told BigMint that most mills currently have sufficient inventories, and buyers see no urgency to enter the market, expecting increased domestic scrap supply after the export ban takes effect. Another trader added that the export ban's impact on market sentiment outweighs its effect on actual supply, as UAE ferrous scrap exports were already limited, but buyers believe increased domestic supply will put further pressure on local prices. Although the export restrictions are expected to have a limited direct impact on the domestic ferrous scrap market, they have reinforced expectations of improved local supply, prompting mills to delay purchases. Market insiders believe the policy is largely neutral for the ferrous scrap market but could provide long-term support for regional scrap fundamentals by reducing UAE export supply.
In the billet market, alongside the softening scrap market, the UAE billet market continues to face procurement challenges despite improved regional logistics following the easing of tensions in the Middle East. Buyers are increasingly focusing on the availability of ECAS-certified billets, with certification compliance and supply chain transparency becoming key procurement considerations alongside price. Market participants indicate that certified billet supply remains relatively tight, prompting buyers to diversify procurement while cautiously evaluating the sources of imported materials. Concerns over the traceability of some billet cargoes have resurfaced, with some traders questioning materials claimed to originate from countries such as China, Oman, or India, which in some cases may have been transshipped from other regions. These claims have not been confirmed, but the uncertainty is making buyers more cautious when placing orders.
Industry sources note that some billets processed into rebar for export markets may not meet the ECAS certification requirements for materials used in domestic UAE consumption. However, enforcement of these regulations remains unclear, adding another layer of uncertainty to procurement decisions. Imported billet offers from China and Indonesia are heard at $520-530/ton CFR UAE, but purchasing activity remains selective as mills prioritize supply security and certification over securing the lowest price. A regional billet trader told BigMint that price is no longer the sole consideration, with buyers increasingly inquiring about the origin of billets and full compliance with ECAS requirements before placing orders.
In the first two months of 2026, India's billet exports to the UAE declined. However, export activity picked up towards the end of the second quarter, with several cargoes heading to the Middle East, particularly Saudi Arabia, as weak domestic steel demand prompted Indian mills to seek export opportunities. Despite a reduction in direct shipments from India, market participants say billet supply in the UAE remains ample, raising questions about alternative supply channels and the origins of some imported materials. As a result, buyers have become more cautious, placing greater emphasis on supply chain transparency and ECAS certification before placing orders.
In Pakistan, the UAE's temporary scrap export ban has heightened market uncertainty, but weak domestic steel demand and sluggish construction activity remain the primary factors suppressing imported scrap prices. Mills continue to purchase only on a need-to-order basis, delaying new purchases in anticipation of lower offers. Looking ahead, the UAE processed scrap market is expected to remain under pressure in the coming weeks, as mills adhere to need-based purchasing and focus on the impact of the export ban on domestic supply. Prices may soften further in the short term, but any sustained downside will likely depend on domestic steel demand and inventory levels. In the billet market, certification compliance, supply chain transparency, and traceability are expected to remain key procurement criteria, with buyers likely to remain selective until ECAS requirements and material origins become clearer.
