Fastmarkets has expanded its suite of Middle Eastern scrap prices with the launch of an index for domestic shredded scrap in the United Arab Emirates on Tuesday April 22.
The new price will complement Fastmarkets’ existing price index for sheared HMS 1&2 scrap, delivered UAE, which was launched in October 2023.
Fastmarkets’ newest ferrous scrap price launch comes on the back of increased demand from UAE and Middle Eastern market participants for deeper coverage of steel and scrap pricing in the region.
For many years, buyers and sellers of steel scrap in the UAE have used CIF India and CIF Turkey ferrous scrap prices as references to guide their trading. But discussions with Fastmarkets over the past two years have demonstrated a growing hunger for a bespoke local benchmark index in the Gulf Co-operation Council (GCC) region.
While UAE steel production stagnated in 2024 – with the country making 3.7 million tonnes last year, down 1.4% year on year – market participants said they still expect to see an increase to steelmaking and scrap demand in the country over the next five years.
And both of the UAE’s largest steelmakers – Emirates Steel (EmSteel) and Arabian Gulf Steel Industries – are planning major capacity expansions over the next few years that are expected to significantly increase demand for steel scrap in the country.
Additionally, several new companies are expected to set up new capacities to produce steel in the UAE over the coming years, according to market participants, in line with forecasts for growing steel demand across the GCC.
The price specification is as follows:
MB-STE-0927 – Steel scrap, shredded, index, domestic, delivered UAE, dirhams/tonne
Quality: Shredded scrap, compliant to ISRI specifications 210-212
Quantity: Min 100 tonnes
Location: Delivered consumer UAE
Timing: Within four weeks
Unit: UAE dirhams per tonne
Payment terms: Cash, Letter of Credit
Publication: Tuesdays 4-5pm London time
This price is a part of the Fastmarkets scrap package.
To provide feedback on this price, or if you would like to provide price information by becoming a data submitter to this price, please contact Lee Allen by email at: pricing@fastmarkets.com. Please add the subject heading “FAO: Lee Allen: re UAE shredded index.”
Please indicate if comments are confidential. Fastmarkets will consider all comments received and will make comments not marked as confidential available upon request.
To see all Fastmarkets’ pricing methodology and specification documents, go to: https://www.fastmarkets.com/methodology.
