Posted on 08 Aug 2024
In the United Arab Emirates, domestic scrap prices fell, driven by new lower purchase prices from major scrap consumers, amid subdued scrap exports to India and Pakistan. This week, local scrap prices in the UAE fell by almost AED 50/tonne ($13.6) on-week, Kallanish confirms from the market sources.
New scrap deal negotiations are discussed between the buyers and dealers at AED 1,275-1,285/t for PNS, down from AED 1,350/t. Fabrication is at AED 1,260-1,280/t, down from AED 1,320-1,350/t last week. HMS 1 90:10 - so called Super - is at AED 1,230-1,240/t, down from AED 1,275/t last week. Sheared prices are expected to fall to AED 1,275/t from last week's AED 1,325/t and HMS 80:20 to AED 1,220/t. All are on a delivered basis and exclude 5% VAT.
In the semis segment, after Omani suppliers cut their prices to $505-510/t ex-works in July-end from early July's $515-520/t ex-works, the rebar re-rollers shifted their supply to Oman. Towards the end of last week, a 5,000t parcel was booked by a buyer at $520/t ddp to the buyer's plant in the UAE, to be shipped immediately once the letter of credit is issued on a sight payment basis. Local (UAE) induction furnace route suppliers still target $525-530/t delivered within the country subject to distance, being not impacted from sliding imported offers.
"We are not in a rush to sell the billet. We can restock them until we get better prices in the market," comments a billet supplier in UAE.
There are many billet offers from the Far East at $480-490/t cfr Jebel Ali/Abu Dhabi (liner out) for load readiness in late September and early October. The lower end of the price range represents volumes of 45,000-50,000t.
Source:Kallanish