Fastmarkets has expanded its engagement with Saudi Arabia’s National Industrial Development Center (NIDC) to enhance steel scrap pricing transparency. The collaboration supports the ongoing development of regional ferrous scrap price benchmarks across the Kingdom. As Saudi Arabia advances its industrial base under Vision 2030, transparent pricing mechanisms become increasingly essential for domestic supply chains.
Expanding Regional Ferrous Scrap Coverage
Fastmarkets launched its primary domestic Heavy Melting Scrap (HMS 1&2) composite index for Saudi Arabia in August 2025. In July 2026, the price reporting agency expanded coverage by introducing regional indices for Jeddah, Riyadh, and the Eastern Province. These regional benchmarks provide localized price visibility across major industrial hubs. Fastmarkets maintains full editorial independence over its published methodologies and pricing standards.
Strengthening Saudi Industrial Supply Chains
Saudi Arabia generates roughly 3.5 million tonnes of steel scrap each year. The Kingdom also operates nearly 16 million tonnes of domestic steelmaking capacity. NIDC executives noted that transparent scrap indices improve transaction efficiency and strengthen local steel competitiveness. Reliable price benchmarks allow recyclers, steelmakers, and traders to manage commodity exposure as infrastructure investments accelerate.
Market Impact
○ Impacted Metals: Heavy Melting Scrap (HMS 1&2), Steel Scrap, Steel Billet, Domestic Steel Rebar
○ Direction: Stable
○ Time Horizon: 2026–2027
○ Affected Industries: Steel Manufacturing, Scrap Recycling, Construction, Infrastructure, Metal Trading
○ Related Price Reports: Stainless Steel Weekly Price Report
○ Watch Item: Monitor commercial adoption rates of regional Saudi ferrous scrap benchmarks by local mills and scrap dealers.
SuperMetalPrice Commentary:
Developing regional scrap benchmarks gives Saudi steelmakers vital hedging tools as domestic scrap generation reaches 3.5 million tonnes annually. Transparent localized pricing reduces transaction friction between scrap collectors and electric arc furnace operators.
As Saudi Arabia expands infrastructure projects under Vision 2030, standardized scrap pricing will attract institutional capital into domestic recycling networks. This market infrastructure will ultimately lower raw material procurement risks for major steel producers across the Middle East.
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