Extension of consultation period for amendment of UAE steel scrap indices

Fastmarkets initially consulted on location of delivery, exact sizing and impurities of materials and payment terms following feedback that these parameters should be narrowed.

But feedback from some market participants has been incomplete during the consultation period, requiring greater time to achieve clarity on these points.

Furthermore, since the consultation launched, the UAE has announced a reverse charge mechanism on value-added tax (VAT) in the trading of metal scrap between registrants in the country, effective from January 14, 2026.

This measure is tailored to improve operational efficiency by shifting the responsibility of VAT accounting from the supplier to the buyer in certain cases, the UAE Ministry of Finance said on December 19.

Under the new reverse charge regime, sellers will no longer add VAT on their invoice for eligible scrap transactions, with buyers instead self-accounting for VAT at 5%, according to market participants.

While some market participants have requested Fastmarkets amend its prices to include VAT costs under the new regime from January 14, others have requested to wait for greater clarity in how the system works in practice.

The proposed specifications are as follows, with amendments in italics:

MB-STE-0910 Steel scrap sheared HMS 1&2 (80:20 mix), index, domestic, delivered UAE, dirhams per tonne
Quality: Sheared, obsolete, light scrap comprising material such as deformed bars and wire from demolished buildings. Material is processed and typically cut into 2-3×1 ft lengths
Quantity: Min 100 tonnes
Location:Delivered consumer Abu Dhabi, United Arab Emirates (UAE)
Timing: Within four weeks
Unit: UAE dirhams per tonne
Payment terms:Bank transfer within 30 days of delivery
Publication: Tuesdays 4-5pm London time
Notes: Other payment terms, locations and material sizes will be normalized.

MB-STE-0927 Steel scrap, shredded, index, domestic, delivered UAE, dirhams per tonne
Quality: Shredded scrap, compliant to ISRI specifications 210-212. Maximum 1% impurity.
Quantity: Min 100 tonnes
Location:Delivered consumer Abu Dhabi, United Arab Emirates (UAE)
Timing: Within three weeks
Unit: UAE dirhams per tonne
Payment terms:Bank transfer within 30 days of delivery
Publication: Tuesdays 4-5pm London time
Notes: Other payment terms, locations and material sizes will be normalized

These prices are part of the Fastmarkets scrap package.

The extended consultation period for this proposed amendment starts from Tuesday January 6 and will now end on February 6. The amendment will then take place, subject to market feedback, on February 10, 2026.

To provide feedback on these indices, or if you would like to provide price information by becoming a data submitter to these indices, please contact pricing@fastmarkets.com and metalsrecycling@fastmarkets.com. Please add the subject heading “FAO Lee Allen re: UAE steel scrap.”

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 the Fastmarkets methodology page.