Saudi Arabia Launches Domestic Iron and Steel Scrap Price Benchmarks

National and regional scrap indicators introduced

Fastmarkets has launched indicative prices for iron and steel scrap in Saudi Arabia, creating new reference points for a domestic market estimated at about 3.5 million tonnes annually. Mubasher reported that the indicators were developed in coordination with the National Industrial Development Center and a group of industry stakeholders, using data collected from the local market.

The initiative includes a general indicator covering Saudi Arabia as a whole and separate indicators for the Eastern Region, Riyadh and the Western Region. The regional coverage is intended to show differences in local market conditions and provide a broader view of price movements across the kingdom.

According to the nationwide indicator, Saudi iron and steel scrap was priced at 1,826 Saudi riyals per tonne on Tuesday, September 8, 2026. The figure excludes value-added tax. No corresponding regional values or historical comparisons were provided in the source material.

References are independent and non-binding

The National Industrial Development Center stressed that the indicators are independent reference tools prepared by Fastmarkets under its own methodology. They are not official or mandatory prices, and they do not constitute a recommendation to buy or sell. Coordination with Fastmarkets also does not amount to exclusive endorsement or preference over other price-reporting services.

Actual transaction prices will continue to depend on supply, demand, material specifications and negotiations between buyers and sellers. The center said other service providers, price-reporting organizations and specialist companies may develop comparable products under the applicable frameworks and requirements. That approach could widen the range of market information available to scrap collectors, processors, traders and steelmakers.

Pricing data gains importance as steel capacity expands

The new references arrive as Saudi Arabia’s iron and steel production capacity stands at about 16 million tonnes annually, according to the figures cited by Mubasher. The scrap market’s estimated annual volume of 3.5 million tonnes is equivalent to almost 22% of that capacity, although the two figures measure different parts of the industry and should not be treated as a direct consumption ratio.

More consistent price information could help market participants compare bids, structure supply contracts and assess recycling investments. Regional indicators may be particularly useful where transport costs, the availability of collected scrap and proximity to processing or steelmaking facilities create price differences within the country.

The National Industrial Development Center linked the initiative to its work on industrial enablers, market transparency and the efficiency of domestic supply chains. It said those efforts support the growth and competitiveness of priority industries and align with Saudi Vision 2030. For steel producers, clearer references may improve raw-material purchasing decisions; for processors and scrap suppliers, they may provide a common starting point for negotiations without replacing the commercial terms of individual transactions.