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Fastmarkets, a leading provider of pricing data, news and market intelligence for global commodity markets, is proud to announce the launch of a tonnage-weighted steel scrap price index for the Saudi Arabian domestic market.
This first-of-its-kind initiative marks a milestone in the global metals industry by providing a transparent and reliable price benchmark for Saudi Arabian steel scrap. In doing so, it addresses a long-standing gap in the market. This empowers industry participants with enhanced tools for commercial transactions, risk management and market insights.
Set to be published weekly, the new scrap benchmark responds directly to demand for an independent reference price from market participants in Saudi Arabia, across Gulf Cooperation Council nations and beyond. It is designed to support the region’s dynamic industrial growth and its ambitious steel-intensive megaprojects. These include NEOM, the Mukaab and the Red Sea Project. They are critical components of Saudi Arabia’s Vision 2030, which is the kingdom’s bold blueprint to diversify its economy and reduce its reliance on oil through massive investment, reform and innovation.
The launch of this weekly index is aimed at offering greater clarity and enabling well-informed decision-making across Saudi Arabia’s steel scrap value chain.
The index, using Fastmarkets’ proprietary tonnage-weighted calculation models, will incorporate prices for HMS 1&2 ferrous scrap from key markets in the east, centre and west of the Kingdom. This produces a composite price index denominated in Saudi Arabian riyals per metric tonne on a delivered basis.
Alongside the roll-out of the national index, Fastmarkets will also calculate regional scrap prices for the key eastern, central and western markets. They will report on these region-specific prices in its regular market reports.
“Launching this new and much-requested index underscores Fastmarkets’ commitment to delivering actionable intelligence that empowers markets. By creating a trusted steel scrap price reference tailored for Saudi Arabia, we’re enabling businesses to thrive in an era of unprecedented industrial transformation in the Kingdom,” said Lee Allen, Fastmarkets’ Strategic Markets Editor, Recycled Metals.
The unveiling of this index comes at a pivotal time for the region’s steel sector. With Saudi Arabia cementing its place as a hub for economic growth and development, accurate and independent pricing will be instrumental. This supports the multibillion-dollar investments flowing into infrastructure, technology and innovation.
Fastmarkets’ launch of the Saudi Arabian ferrous scrap index follows an import price for hot rolled coil (HRC) steel CFR Saudi Arabia in 2014. It also follows the launch of a Saudi Arabian domestic price for rebar in October 2023.
Join Fastmarkets at its forthcoming Middle East Iron and Steel Conference from November 17-19 – a vital platform to explore emerging opportunities. This highlights the role of initiatives such as the Saudi scrap index in shaping the future of regional and global markets.
Email media@fastmarkets.com to connect with the team and find out how Fastmarkets can help you.