UAE-based Emirates Steel Industries (ESI), the largest crude steel and longs producer in the country and in the region overall, has recently announced it will source 1 million mt per year of steel scrap locally. "The UAE steel industry needs protection, especially with the challenges it faces, including a sharp reduction in steel demand, a slowdown in construction activity and the restriction on exports", Saeed Ghumran Al Remeithi, CEO of ESI, commented.
On the one hand, according to sources, the recently imposed ban on ferrous waste exports from the UAE has most probably resulted in a more sufficient scrap allocation in the local UAE market. On the other hand, the fact that ESI has pledged to secure such a significant volume is expected to benefit local scrap sellers as the mill is the largest buyer in the country, SteelOrbis understands. Normally, ESI uses its own DRI as a raw material and the required scrap has been sourced locally with minor volumes coming from abroad, delivered in containers, sources familiar with the situation have indicated.