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Your condition appears to be chronic,persistent and it is not contagious. The nearest differential that I can think here is an eczema. Eczematous skin conditions usually present as a red rash with red borders and they may be weeping and itchy. There may be excoriations present which may present with a scab. The scab may cause the rash to look worse. You may need topical corticosteroids for this as eczematous skin conditions are not infectious.