#Saudi Arabia #Riyadh #Fastmarkets #Steel Scrap

Fastmarkets Launches the First Steel Scrap Price Index in Saudi Arabia

Fastmarkets has recently made headlines with the introduction of a revolutionary tonnage-weighted steel scrap price index specifically tailored for the Saudi Arabian market. This first-of-its-kind index signifies a major advancement in the global metals industry, offering a dependable price benchmark that addresses a significant gap in the current market. As the demand for transparency and reliable data grows, this innovative pricing model will empower industry players by providing essential tools for conducting transactions, managing risks, and gaining market insights.

The new steel scrap price index is set to be published on a weekly basis, responding directly to the feedback from participants in Saudi Arabia and other Gulf Cooperation Council (GCC) nations. The initiative supports the region's rapidly growing industrial sector, aligning with ambitious projects such as NEOM, the Mukaab, and the Red Sea Project—core elements of Saudi Arabia's Vision 2030. This strategic plan aims to diversify the nation’s economy and reduce its dependence on oil by fostering tremendous investments in various sectors, including steel-intensive industries.

By launching this index, Fastmarkets aims to enhance clarity within the steel scrap value chain, thus facilitating informed decision-making among businesses associated with this sector. The index employs proprietary tonnage-weighted calculation methodologies that integrate prices from key markets in the east, central, and west regions of Saudi Arabia. Resulting from this calculation is a composite price index expressed in Saudi riyals per metric tonne on a delivered basis.

In support of the main index, Fastmarkets will also provide localized price calculations for the eastern, central, and western markets. These region-specific prices will be featured in their regular market reports, enriching the available data for stakeholders.

Lee Allen, Fastmarkets’ Strategic Markets Editor for Recycled Metals, commented on the significance of this new index by stating, “The launch of this much-requested initiative underscores our commitment to delivering actionable intelligence that empowers the markets. By creating a trustworthy steel scrap price reference tailored for Saudi Arabia, we are enabling businesses to thrive during an unprecedented phase of industrial transformation within the Kingdom.”

The unveiling of this index comes at a crucial juncture for Saudi Arabia's steel industry, as the nation establishes itself as a pivotal center for economic growth and innovation. In an era marked by multibillion-dollar investments in infrastructure and technology, independent and accurate pricing will be crucial in navigating the evolving landscape of the market.

Fastmarkets has a history of innovation, following its previous launches: an import price for hot rolled coil (HRC) steel in Saudi Arabia back in 2014 and a domestic price for rebar released in October 2023. The introduction of the steel scrap index further solidifies its role as a front-runner in the commodity pricing landscape.

Fastmarkets invites interested parties to participate in its upcoming Middle East Iron and Steel Conference scheduled from November 17-19. This event will serve as a vital platform for exploring burgeoning opportunities and discussing the significance of innovative initiatives like the Saudi scrap index in shaping the future of regional and global markets. Businesses wanting to learn more about how Fastmarkets can enhance their trade strategies can reach out via email.

Fastmarkets is recognized as a premier provider of price data and market intelligence across multiple industries, including agriculture, metals, and energy sectors. Established in 1865, Fastmarkets maintains a global footprint with over 850 employees across various countries, providing nuanced insights that empower traders and stakeholders to navigate complex markets effectively.