Domestic scrap prices in the United Arab Emirates have fallen significantly as demand for scrap imports from the UAE in Bangladesh and Pakistan has dried up.

Scrap exporters have discovered a new route for containerised scrap exports to India via Bahrain amid Indian Customs' vigilance and determination not to clear UAE-origin scrap imports, notes Kallanish.

"Scrap exporters use small shipping lines, and when the cargo is loaded to another vessel in Bahrain, Indian Customs cannot trace it. Also, the bill of lading [country of origin] changes in Bahrain; that's how the scrap export to Nava Shiva in India continues," explains a well-informed source.

This week in the UAE, domestic scrap quotes delivered within the country are at AED 1,175-1,210/tonne ($320-329) for HMS 1/2 80:20 and at AED 1,250-1,300/t (340-354) for fabrication. Mixed material (light scrap) HMS 50:50 is quoted at around AED 1,050-1,100/t delivered.

Local induction furnace-route billet producers are still targeting $530-535/t delivered within the country for 150mm 3sp billet. Oman's electric arc furnace mills are offering the same grade (rebar grade) billet at $525/t fob or $530-535/t cpt Dubai.

Iranian billet offers are still at $475-477/t fob, equating to $507-515/t cfr (liner out) UAE or Omani ports for end-November and mid-December shipment.

"The market is very quiet, and in October, the domestic rebar trade in UAE is not strong, against expectations. Some mills withdrew their billet enquiries," comments a buy-side source.