Fastmarkets Introduces Groundbreaking Saudi Arabian Steel Scrap Price Index

Fastmarkets Launches a Revolutionary Price Index for Saudi Arabian Steel Scrap

In a significant development in the global commodities sector, Fastmarkets, a leading provider of pricing data, news, and market intelligence, has recently unveiled the world's first price index specifically tailored for steel scrap in the Saudi Arabian domestic market. This initiative marks a groundbreaking moment in the metals industry, creating a transparent and reliable pricing standard that has long been absent in this area.

The introduction of this weighted price index is poised to fill a critical market gap, granting industry participants enhanced tools for commercial transactions, risk management, and market insights. Set to be published on a weekly basis, the new benchmark responds directly to a rising demand among market players in Saudi Arabia and across the Gulf Cooperation Council (GCC) region for an independent price reference for steel scrap.

This development aligns with the ambitious steel-intensive megaprojects such as NEOM, Mukaab, and the Red Sea Project—cornerstones of Saudi Arabia's Vision 2030. This vision aims to diversify the economy and reduce dependency on oil through substantial investments, innovative reforms, and a dynamic approach to industry growth. The vending of the index intends to foster clarity and support informed decision-making throughout the entire steel scrap value chain in the kingdom.

Fastmarkets employs its sophisticated tonnage-weighted calculation models to devise this index, incorporating prices from major markets in the eastern, central, and western regions of Saudi Arabia. The resulting composite price index will be quoted in Saudi Riyals per metric ton, laid out on a delivery basis.

In addition to the national index, Fastmarkets will also calculate regional scrap prices for principal markets in the east, center, and west, offering regular market reports that detail these region-specific prices.

Lee Allen, Strategic Markets Editor at Fastmarkets for recycling metals, reiterated the company’s commitment by stating, “The launch of this new and much-anticipated index underscores our dedication to providing actionable insights that empower markets. By creating a reliable, Saudi Arabia-focused reference for steel scrap prices, we can help businesses thrive in this era of unprecedented industrial transformation within the kingdom.”

The timing of this index release is pivotal for the regional steel sector, especially as Saudi Arabia solidifies its position as a hub for economic growth and development. Accurate and independent pricing will play a crucial role in supporting multi-billion-dollar investments in infrastructure, technology, and innovation.

The debut of the Saudi Arabian steel scrap index follows the introduction of an import price for hot rolled coil (HRC) to Saudi Arabia in 2014 and the establishment of a domestic concrete rebar price in October 2023. Fastmarkets will also be present at the upcoming Middle East Iron and Steel Conference from November 17 to 19, providing a vital platform to explore new opportunities and the influence of initiatives like the Saudi scrap index on shaping the future of both regional and global markets.

For inquiries about how Fastmarkets can assist your business, you can reach out to their team via email at [email protected].

About Fastmarkets

Fastmarkets has been an industry leader in the provision of pricing, data, and market information for the agriculture, forestry products, metals, carbon, and energy transition markets. The company offers clients crucial benchmark prices, forecasts, analysis, insights, news, and events to facilitate a better understanding of dynamic, sometimes opaque markets for trading and risk management. With a legacy that dates back to 1865, Fastmarkets relies on trust and deep market knowledge. The company operates globally, employing over 850 professionals across several locations, including the UK, US, China, Singapore, Brazil, Bulgaria, Belgium, Ukraine, and Finland. Fastmarkets is a privately-held company registered in the UK, owned by its shareholders and Astorg, a European private equity firm.