Launch of Saudi Arabia ferrous scrap index

The new price will complement Fastmarkets’ existing price indices for sheared HMS 1&2 scrap, delivered UAE, which was launched in October 2023, and for shredded scrap, delivered UAE, launched in April 2025.

The index, using Fastmarkets’ proprietary tonnage-weighted calculation models, will incorporate prices for HMS 1&2 ferrous scrap from key markets in the east, center and west of the Kingdom to produce a composite price index denominated in Saudi Arabian riyals per metric tonne on a delivered basis.

The index is tonnage-weighted and regionally split, with sub-indices for the key markets of Jeddah, Riyadh and Dammam. The weighting of the national index to the final number has been set based on consumption capacity across the Kingdom based on feedback from market participants.

Fastmarkets’ Saudi Arabia scrap index launch follows extensive demand from key stakeholders in the Kingdom and across the Gulf Co-operation Council (GCC) for greater transparency in the pricing of ferrous scrap in Saudi Arabia.

Saudi Arabia is the largest producer of steel among the GCC nations. In January-June 2025, it produced 4.8 million tonnes of steel, and although the total was down by 2% year on year, June’s output of 913,000 tonnes was a sharp year-on-year rise of 23.5% for the month.

Market participants expected a surge in demand for steel products in the Kingdom over the next five years.

This was due largely to the region’s industrial growth and steel-intensive megaprojects, such as the NEOM megacity, the Mukaab and the Red Sea Project.

These are critical components of Saudi Arabia’s Vision 2030, the Kingdom’s blueprint to diversify its economy and reduce its reliance on oil through investment, reform and innovation.

The index specification is as follows:

MB-STE-0939 Steel scrap HMS 1&2 index, domestic composite, delivered Saudi Arabia, riyals per tonne
Quality: HMS 1&2 scrap. Quality may range from HMS 1&2 (60:40) to HMS 1&2 (80:20). Material is not sheared.
Quantity: Min 100 tonnes
Location: Delivered consumer Saudi Arabia. The index is a tonnage-weighted, regionally split index with sub-indices for the key markets of Jeddah, Riyadh and Dammam. The weighting of the national index to the final number has been set based on consumption capacity across the Kingdom based on market participants’ feedback.
Timing: Within three weeks
Unit: Saudi riyals per tonne
Payment terms: Letter of Credit, Bank Transfer
Publication: Tuesdays, 4-5pm London time.

This price is a part of the Fastmarkets scrap package.

Fastmarkets’ index methodology screens outliers and applies a quantity-weighted model to ensure that the Saudi Arabia ferrous scrap index is the most robust in the industry. Fastmarkets has no financial interest in the level or direction of the index.

To provide feedback on this index, or if you would like to provide price information by becoming a data submitter to this index, please contact Lee Allen by email at: pricing@fastmarkets.com. Please add the subject heading “FAO: Lee Allen: re Saudi Arabia steel scrap index.”

Please indicate if comments are confidential. Fastmarkets will consider all comments received and will make comments not marked as confidential available upon request.

To see all Fastmarkets’ pricing methodology and specification documents, go to: https://www.fastmarkets.com/methodology.