Fastmarkets Unveils Pioneering Steel Scrap Price Index for Saudi Arabia

Fastmarkets Launches Revolutionary Steel Scrap Price Index in Saudi Arabia

Fastmarkets, a leader in pricing data and market intelligence for global commodities, has introduced a groundbreaking steel scrap price index tailored for the domestic market of Saudi Arabia. This milestone initiative marks the first of its kind within the global metals industry, filling a significant gap in pricing standards and serving as a key benchmark for the region's rapidly evolving industrial frameworks.

This new weekly price index aims to provide a transparent and reliable reference point for steel scrap prices in Saudi Arabia, which is essential for various stakeholders involved in commercial transactions, risk management, and gaining valuable market insights. The introduction of this index aligns with the growing demands of market participants across the Gulf Cooperation Council (GCC) countries, who have been requesting a dependable pricing mechanism to optimize their operations.

As Saudi Arabia pursues its ambitious goals outlined in Vision 2030—aiming to diversify its economy beyond oil—this scrap price index plays a vital role in supporting large-scale infrastructure and technology investments, including projects like NEOM, the Mukaab, and the Red Sea Project. These initiatives are instrumental in driving steel usage and underscore the importance of accurate pricing in fostering and sustaining national economic architecture.

The index utilizes Fastmarkets' proprietary tonnage-weighted methodology, which aggregates prices for HMS 12 ferrous scrap from strategic markets located across the Eastern, Central, and Western regions of the Kingdom. The composite index will be reported in Saudi Arabian riyals per metric ton on a delivered basis, ensuring stakeholders receive timely and contextual pricing data.

In addition to the national index, Fastmarkets will offer localized pricing for the eastern, central, and western markets, which will be reported in regular market updates, further enhancing subscribers' understanding of regional market dynamics.

Lee Allen, Fastmarkets’ Strategic Markets Editor for Recycled Metals, expressed the significance of this launch, stating, "The introduction of this new and highly-anticipated index reflects Fastmarkets' dedication to providing actionable intelligence to the industry. By establishing a trusted steel scrap pricing reference uniquely attuned to the Saudi market, we are empowering businesses to succeed amidst unprecedented industrial transformation in the Kingdom."

The launch of this vital pricing index comes at a crucial juncture for the steel sector in Saudi Arabia. With the nation positioning itself as a center for economic growth and industrial capability, a reliable pricing mechanism is expected to support the influx of multibillion-dollar investments aimed at infrastructure development, technological advancement, and innovative solutions in various sectors.

Fastmarkets previously introduced an import price for hot-rolled coil (HRC) steel in Saudi Arabia in 2014 and reported a domestic price for rebar in October 2023. These pricing initiatives illustrate a strong commitment to enhancing market visibility and supporting regional growth trajectories.

Looking ahead, Fastmarkets invites stakeholders to engage in their upcoming Middle East Iron and Steel Conference, taking place from November 17-19. This event serves as an essential platform for exploring emerging opportunities and understanding the role of the new Saudi scrap index in shaping both regional and global markets. For additional insights, you may connect with the Fastmarkets team at [contact email].

About Fastmarkets

Fastmarkets is a trusted provider of market information and pricing for a variety of commodities, including agriculture, metals, and energy. Established in 1865, the firm has built a global reputation based on integrity and expertise, and it continues to serve clients with essential data that drives informed decision-making. With over 850 employees worldwide, Fastmarkets remains committed to delivering exceptional market insights to its customers.