Salvage Steel Price in the UAE: An In Depth Analysis
Salvage steel, commonly referred to as iron scrap, encompasses recyclable steel materials derived from various sources, including manufacturing remnants, decommissioned structures, and end-of-life products. Unlike waste, scrap steel retains significant value
Due to its potential for recycling into new iron products, thereby conserving natural resources and reducing energy consumption. The salvage steel price of processed Heavy Melting Steel (HMS) 80:20 scrap in the United Arab Emirates (UAE) is approximately AED 1,191 per tonne.
Understanding Salvage Steel Price depending on Quality of scrap iron
Salvage steel plays a pivotal role in the steel industry’s supply chain. It is broadly categorized into three types
- Home Scrap: Generated within steel mills during the production process, including trimmings and rejects.
- Prompt (Industrial) Scrap: Produced during the manufacturing of products, such as excess material from automotive or appliance production.
- Obsolete Scrap: Derived from end-of-life products like old vehicles, building materials, or machinery.
The recycling of old iron is highly efficient and environmentally beneficial, as it reduces the need for raw material extraction and decreases energy consumption.
Current Salvage Steel price in the UAE
The UAE’s salvage steel price in market is influenced by a myriad of factors, including global steel demand, local industrial activity, and regulatory policies. As of March 13, 2025, the domestic ferrous scrap index in the UAE declined by AED 16 per tonne week-on-week
With processed HMS 80:20 scrap trading at approximately AED 1,191 per tonne. This decline was attributed to sluggish demand from mills during the Ramadan period.
Factors Influencing Salvage steel price
Several elements contribute to the fluctuation of Salvage steel price scrap in the UAE:
Global Market Trends: The international demand and supply of steel significantly impact local scrap iron rate. For instance, a surge in global steel production can increase the demand for scrap steel, thereby elevating 1kg iron price.
Local Industrial Activity: The health of the UAE’s construction and manufacturing sectors directly affects the generation and consumption of scrap steel. Increased construction projects lead to higher demand for steel, influencing scrap prices.
Regulatory Policies: Government regulations, such as export duties and import restrictions, can alter the availability and cost of scrap steel. In January 2025, the UAE imposed an export duty of AED 400 per tonne on ferrous scrap, leading to adjustments in Dubai scrap market
Seasonal Factors: Periods like Ramadan can lead to reduced industrial activity, impacting demand and subsequently affecting cost of scrap iron.
Recent Trends and Market Sentiments
In the latter part of 2024, the UAE’s scrap market experienced notable fluctuations. For instance, on November 18, 2024, HMS 80:20 steel scrap price per ton ranged between $332 to $354 per tonne, reflecting a $26 per tonne increase from the previous week. These fluctuations were driven by changes in supply and demand dynamics within the domestic market.
However, by December 2, 2024, trading in the UAE scrap market slowed down despite Emirates iron scrap price hike. HMS 80:20 processed price per ton scrap metal fell to AED 1,245 per tonne, with expectations of further slowdown due to national holidays.
Impact of Export Duties
The introduction of export duties has a profound effect on the scrap steel market. Following the announcement of a AED 400 per tonne export duty in January 2025, major local scrap buyers reduced their purchase prices by AED 75 per tonne.
This move was in anticipation of decreased attractiveness of UAE-origin scrap in international markets like Pakistan, Bangladesh, and India.
Market Outlook
The UAE’s scrap steel market is poised to remain range-bound during periods of reduced industrial activity, such as Ramadan. However, a rebound is anticipated post-Ramadan, which could support price recovery.
Market participants should closely monitor global steel demand, local industrial developments, and regulatory changes to navigate the evolving landscape effectively.
Conclusion
Salvage steel remains a critical component of the UAE’s steel industry, with prices influenced by a complex interplay of global trends, local activities, regulatory measures, and seasonal factors. Staying informed about these dynamics is essential for stakeholders to make strategic decisions in this ever-changing market.