Enhancing Pricing Transparency in Saudi Steel Scrap Market: Fastmarkets' Partnership with NIDC

Enhancing Pricing Transparency in Saudi Steel Scrap Market

Fastmarkets, a premier provider of cross-commodity price reporting and analytics, is taking significant strides to improve the pricing transparency of the Saudi steel scrap market. This initiative is being realized through a collaboration with the National Industrial Development Center (NIDC) of Saudi Arabia, which lays the groundwork for developing and enhancing price indices for ferrous scrap materials in the region. This partnership is significant as the Kingdom embraces its Vision 2030 agenda, expediting the growth of its industrial base and creating more sophisticated domestic markets.

In August 2025, Fastmarkets introduced its steel scrap HMS 12 index, a key domestic composite price index tracking the trends of steel scrap pricing in Saudi Arabia. This index was established through thorough consultations with various local market participants, marking a pivotal moment in the Kingdom’s journey towards creating independent and transparent pricing benchmarks.

Building on this, on July 7, 2026, Fastmarkets expanded its portfolio by introducing three regional ferrous scrap indices based on HMS 12 for the cities of Jeddah, Riyadh, and the Eastern Province. This broader coverage enhances the visibility of pricing movements across the major industrial hubs in Saudi Arabia, fostering better market conditions and stablizing prices affected by various regional economic factors. Fastmarkets adheres to strict methodologies in producing these indices, ensuring an impartial stance in price reporting.

Matar Al-Harthi, EVP of Minerals and Metals at NIDC, articulated the importance of this index in creating market transparency, noting that it offers a reliable price reference based on local market conditions. By streamlining transactions and bolstering local supply chains, such initiatives are crucial to enhancing the competitiveness and efficiency of the Saudi steel sector, aligning with the overarching goals of Saudi Vision 2030.

Raju Daswani, CEO of Fastmarkets, also stated that ongoing discussions with NIDC signify a crucial milestone towards achieving higher price transparency within both the steel and recycling sectors of Saudi Arabia. The establishment of independent price benchmarks is vital for fostering the necessary transparency and confidence that markets require to thrive. As Saudi Arabia continues to invest heavily in its industrial capabilities and infrastructure, reliable pricing references will prove increasingly essential for all stakeholders, including producers, recyclers, traders, consumers, and interested investors.

In terms of market figures, Saudi Arabia produces around 3.5 million tonnes of steel scrap each year and has an estimated steelmaking capacity of approximately 16 million tonnes. This significant production capability, paired with ongoing investments in industrial development and infrastructure, is projected to contribute to sustained long-term demand for both steel and its raw materials. This growth underscores the need for robust market structures and transparent pricing mechanisms that can accommodate this evolving landscape.

Fastmarkets' ferrous scrap indices provide an indispensable pricing reference for a diverse array of market participants. These include steel producers, recyclers, scrap traders, industrial scrap generators, downstream buyers of steel, governmental bodies, and international stakeholders engaged in Saudi Arabia's steel value chain.

Furthermore, this initiative builds upon Fastmarkets' investment in the Middle Eastern metals markets and complements its expanding suite of regional price assessments and benchmarks, which also encompass Saudi Arabian CFR steel billet and domestic rebar pricing. Through this collaborative venture, Fastmarkets aims to solidify its role as a linchpin in building a more transparent and efficient steel marketplace in Saudi Arabia.

For further insights and detailed information, interested parties can learn more about Fastmarkets' Saudi Arabian ferrous scrap indices by accessing their official website. This initiative is a promising step towards forging resilience and transparency within the market, ultimately benefiting all entities involved in the steel supply chain.

About Fastmarkets

Fastmarkets has established itself as a leading price reporting agency (PRA) and information provider for various sectors, including agriculture, forest products, metals, and the energy transition. With benchmarks, analytics, and market insights that are crucial for trading, risk management, and navigating complex global markets, Fastmarkets serves as a vital resource for industry practitioners. Founded in 1913, the organization boasts a rich heritage and operates over 700 employees across offices worldwide, positioned across Europe, the Americas, and Asia.