Scrap steel prices and its types
Overview of scrap steel prices
Steel scrap plays a crucial role in the production of new steel products, and the market for scrap steel is an essential component of the global recycling industry. Various types of steel scrap are available in the market, each with its own characteristics and pricing. The scrap steel prices fluctuate based on factors such as quality, demand, and location. Below are some major scrap steel prices commonly traded in the market in UAE.
Table of Contents for scrap steel prices
1. HMS 80:20 Grade Scrap
The term HMS 80:20 Grade Scrap refers to a blend of 80% heavy melting steel (HMS) and 20% lighter steel. This grade is often considered a general-purpose scrap and is commonly used in steel manufacturing processes. It is typically collected from old structures, equipment, and vehicles. The quality of HMS 80:20 can vary, but it is generally considered to be of average quality, with a significant portion being less valuable due to the presence of lighter, non-ferrous materials.
Price: AED 1,225 per ton
HMS 80:20 is priced lower compared to more specific types of scrap, reflecting its mixed composition. However, it remains a key component in the recycling industry as it provides a steady supply of raw material for steel mills.
2. Fabrication Scrap
Fabrication Scrap consists of clean steel material left over from fabrication processes. Unlike general mixed scrap, fabrication scrap is typically free from contaminants like plastic or rubber, making it more valuable. The scrap is primarily composed of steel parts, offcuts, or other materials produced during the manufacturing of steel products. This clean and pure steel is ideal for recycling and is highly sought after by steel mills, as it requires less processing before it can be used in the production of new steel.
Price: AED 1,320 per ton
Due to its higher quality and clean composition, fabrication scrap commands a higher price compared to HMS 80:20 scrap. Manufacturers and recyclers are willing to pay more for this type of scrap as it reduces the need for further sorting or cleaning.
3. Light and HMS Blended Scrap
Light and HMS Blended Scrap refers to a combination of lighter steel materials mixed with heavy melting scrap. This type of scrap can include various sources, such as car bodies, household appliances, and structural steel. The “light” component typically includes thinner and less dense materials, while the “HMS” portion consists of heavier and more robust steel parts. Blended scrap offers a balance of different types of steel, which makes it suitable for a wide range of manufacturing applications.
Price: AED 1,050 per ton
While the price of light and HMS blended scrap is lower than fabrication scrap, it still provides significant value to recycling operations due to the variety of materials it encompasses. It is an important commodity in the recycling chain, offering a cost-effective way to source raw materials for steel production.
4. HMS Sheared Scrap
HMS Sheared Scrap refers to steel scrap that has been sheared or cut into smaller pieces for easier handling, sorting, and processing. This scrap is typically derived from larger, older structures like industrial machinery, shipyards, or demolished buildings. Sheared scrap is considered a high-quality material because it is more uniform and free from contaminants. The shearing process ensures that the scrap is clean and of a manageable size, making it ideal for use in steel mills where consistent and high-quality materials are needed.
Price: AED 1,325 per ton
HMS Sheared Scrap is priced higher than HMS 80:20 and blended scrap due to its uniformity and higher quality. Steel mills value this scrap because it requires minimal additional processing, making it a more cost-effective option for manufacturers.
Table showing scrap steel price per kg & Ton
| Type of scrap steel | PRICE PER KG | scrap steel price per ton in aed |
|---|---|---|
| HMS 80:20 Grade Scrap | 1.23 | 1225 |
| Fabrication Scrap | 1.32 | 1320 |
| Light and HMS Blended Scrap | 1.05 | 1050 |
| HMS Sheared Scrap | 1.33 | 1325 |
Conclusion
Steel scrap is a valuable resource in the global recycling industry, with various types available for different applications. The scrap steel prices fluctuate depending on factors such as quality, supply, and demand. HMS 80:20 Grade Scrap, Fabrication Scrap, Light and HMS Blended Scrap, and HMS Sheared Scrap are some of the most common types traded, each with distinct characteristics and pricing.
Recycling scrap steel plays a vital role in reducing the need for virgin raw materials and minimizing the environmental impact of steel production. As the demand for recycled steel continues to rise, the market for steel scrap will remain a key driver in the global steel industry, offering economic and environmental benefits.
Steel scrap prices fluctuate due to production rates, import/export regulations, and economic conditions. Higher scrap production lowers prices, while trade restrictions and economic growth drive them up. Buyers face higher costs, impacting manufacturing, while sellers benefit from increased revenue but may also face rising production expenses.
Disclaimer
The scrap steel prices for steel mentioned for steel scrap are indicative and may vary based on market conditions, location, and quality. Please contact the supplier directly for the most accurate and up-to-date pricing information.