The steel industry in the United Arab Emirates is experiencing a dynamic period, with fluctuations in scrap prices and changing demand patterns. In the local market, processed HMS (80:20) scrap prices rose by AED 15 (USD 4) week-on-week, reaching AED 1,276 (USD 347) per ton. Sales in Abu Dhabi-based trade were conducted at AED 1,260-1,275 (USD 343-347) per ton, with a transaction volume of approximately 8,000-10,000 tons.
Local scrap prices have fluctuated between AED 1,223 (USD 333) and AED 1,285 (USD 350) in recent weeks, influenced by changes in steel production rates and volatility in scrap demand from major mills. Meanwhile, export demand to markets like Pakistan and Bangladesh remains weak. Scrap prices for exports are trading at USD 370 per ton CFR to Pakistan and USD 375 per ton CFR to Bangladesh, with little movement observed in the Indian market.
According to market sources, Emirati buyers are increasingly turning to hot-rolled coil (HRC) imports, with attractive offers coming from China, Japan, and Taiwan. Local scrap suppliers are offering processed HMS (80:20) at AED 1,300 (USD 354) per ton, although offers above this level have seen limited interest.
Experts predict that local scrap prices will remain stable and that the steel market will continue to recover through December. Additionally, growing demand in the construction sector and an acceleration in infrastructure projects are expected to contribute positively to the overall market trend.
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