Fastmarkets launches UAE domestic ferrous scrap index
Fastmarkets launches an index for the domestic ferrous scrap market in the United Arab Emirates (UAE) on Tuesday October 17.
This move into pricing the UAE’s local market reinforces Fastmarkets’ position as a leading price reporting agency (PRA) in the steel scrap space, building on the significant physical market use of Fastmarkets’ scrap prices in Europe, Asia and North America.
Fastmarkets’ new UAE steel scrap price is based on processed, sheared HMS 1&2 (80:20), which is the most popular grade of material traded in the UAE. Most steelmakers purchasing ferrous scrap in the UAE currently do not own processing equipment at their plants, making pre-processed material much more appealing, UAE market participants told Fastmarkets.
The launch comes ahead of a triumvirate of important scrap and steel events being held in the UAE, including the Bureau of Middle East Recycling (BMR) conference in Dubai on October 20-21, the Bureau of International Recycling (BIR) World Recycling Convention 2023 on October 22-24 and Fastmarkets’ own Middle East Iron & Steel (MEIS) conference on November 20-22.
Fastmarkets’ newest launch also comes on the back of increased demand, from both buyers and sellers of the secondary raw material, for a benchmark price for scrap in Gulf Cooperation Council (GCC) countries.
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 since the start of the year have demonstrated a hunger for a bespoke local benchmark index in the GCC.
The UAE’s consumption of steel scrap is expected to rise sharply in the coming years, in line with higher steel production there and a commitment to a lower-carbon economy.
The country has committed to hit net-zero targets by 2050 – the first country in the Middle East and North Africa nation to make this pledge.
The new price index will be published weekly from Tuesday October 17.
The price specification is as follows:
MB-STE-0910 – Steel scrap HMS 1&2 (80:20 mix), index, domestic, delivered UAE, dirhams/tonne
Quality: Sheared, obsolete, light scrap comprising material such as deformed bars and wire from demolished buildings. Material is processed and typically cut into 2-3x1ft lengths
Quantity: Min 100 tonnes
Location: Delivered consumer United Arab Emirates (UAE)
Timing: Within four weeks
Unit: UAE dirhams per tonne
Payment terms: Cash, Letter of Credit
Publication: Tuesdays 4-5pm London time
This price will be a part of the Fastmarkets scrap package.
Fastmarkets’ index methodology screens outliers and applies a quantity-weighted model to ensure that the index is the most robust in the industry. Fastmarkets has no financial interest in the level or direction of the index.
If you would like to provide price information by becoming a data submitter to these assessments, please contact Lee Allen by email at: email@example.com. Please add the subject heading: “FAO: Lee Allen re: UAE steel scrap 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.