#Saudi Arabia #Riyadh #Fastmarkets #Steel Scrap

Fastmarkets Launches a Revolutionary Steel Scrap Price Index in Saudi Arabia

Fastmarkets, a premier provider of market pricing data, news, and intelligence for global commodity markets, has announced the launch of a unique price index specifically for steel scrap in Saudi Arabia. This index aims to fill a significant gap in the market by establishing a reliable and transparent benchmark for steel scrap pricing in the region.

A Milestone in the Industry

This pioneering initiative signifies a vital step forward in the metallurgical sector globally. The new price index is designated to assist market participants with improved tools for trade transactions, risk management, and market analysis, addressing long-standing issues regarding price transparency in the industry.

With a weekly publication schedule, the index will respond to the increasing demand for an independent pricing reference from market participants not only in Saudi Arabia but also across Gulf Cooperation Council (GCC) countries and beyond. This transparent pricing mechanism is expected to drive the ongoing industrial growth in the region, supporting ambitious mega-projects like NEOM, Mukaab, and the Red Sea Project, all integral components of Saudi Arabia's Vision 2030 plan. This national strategy seeks to diversify the Kingdom’s economy and lessen its dependence on oil through substantial investments, extensive reforms, and innovation.

Important Features of the New Index

The Fastmarkets index will utilize proprietary tonnage-weighted calculations to derive a composite price, which will be quoted in Saudi riyals per metric ton delivered. It will incorporate prices of Heavy Melting Scrap (HMS) grades 1 and 2 from key eastern, central, and western markets throughout the Kingdom. In conjunction with the national index, Fastmarkets will also compute prices for regional scrap markets and report them in their periodic market reports.

Lee Allen, Editor of Strategic Markets at Fastmarkets, expressed the significance of this launch: “The introduction of this long-awaited index underscores our commitment to providing actionable insights that drive markets. By creating a reliable steel scrap pricing reference tailored to Saudi Arabia, we are facilitating the growth of businesses amid an unprecedented industrial transformation in the Kingdom.”

Timeliness and Relevance

The timing of this price index launch is especially crucial for the steel industry in the region. As Saudi Arabia continues to assert itself as a hub for economic growth and development, accurate and independent pricing will be fundamental in supporting the billions of dollars being invested in infrastructure, technology, and innovation.

This initiative follows the establishment of a hot-rolled coil (HRC) import price for Saudi Arabia back in 2014 and the release of an internal pricing metric for rebar in October 2023, both by Fastmarkets. The coherent evolution of these pricing indices illustrates the growing sophistication and transparency of the Saudi Arabian steel market.

Looking Ahead

Industry professionals and stakeholders are invited to join Fastmarkets at the upcoming Middle East Iron and Steel Conference, scheduled for November 17-19. This event will serve as a crucial platform for discussing emerging opportunities and the role of initiatives like the Saudi scrap index in shaping the future of both regional and global markets.

For those interested in connecting with the Fastmarkets team or learning more about how their services can assist, they can reach out via email at [email protected].

About Fastmarkets

Fastmarkets is a leading risk analysis provider, offering essential information for the agricultural, forestry, metals, carbon, and energy transition commodity markets. By delivering benchmark prices, assessments, forecasts, news, and events, Fastmarkets empowers clients to navigate and predict dynamic markets, often characterized by opacity, ultimately facilitating trade and risk management. Established in 1865, Fastmarkets is a globally recognized company with more than 850 employees located in various international hubs including the UK, USA, China, Singapore, and Brazil, among others. The business operates privately and is owned by its shareholders and Astorg, a private equity firm based in Europe.