The scrap market in the United Arab Emirates (UAE) has been characterised by limited trade volumes, despite the increase in scrap prices by Emirates Steel (EMSTEEL). HMS (80:20) processed scrap prices decreased by AED 31 (USD 8) /ton to AED 1,245 (USD 339) /ton on a weekly basis, while shredded scrap prices fell from AED 1,300 (USD 354) /ton to AED 1,270-1,280 (USD 346-349) /ton.
Local LMS scrap prices fell by AED 20 (USD 5) /tonne, while HMS (80:20) virgin scrap prices fell by AED 15-20 (USD 4-5) /tonne. Purchases remained limited despite suppliers' high offers, with many companies postponing their purchases due to uncertainty over prices.
Trade is expected to slow down due to national holidays. From 30 November to 3 December, many factories and processors are planning to shut down their operations, while scrap trade and logistics activities are expected to be disrupted during this period. After the holidays, the market is expected to recover and trade volumes are expected to increase. However, low demand is also observed in the UAE export market; for example, HMS 1 scrap was offered at USD 385-390/ton for CFR Qasim and HMS/PNS at USD 405-410/ton for CFR Dhaka.
In general, Emirates Steel's price hike was insufficient to boost the market activity, while prices have been on a downward trend, especially for local processed and unprocessed scrap. In the upcoming period, the market's recovery may take some time due to the holiday effect and low buyer interest.
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