On August 5, 2025, Fastmarkets, a global leader in commodity pricing and market intelligence, announced the launch of the world’s first tonnage-weighted steel scrap price index specifically for Saudi Arabia’s domestic market. This pioneering index provides a transparent, reliable price benchmark for steel scrap in Saudi Arabia, filling a significant gap in the regional metals market.

Published weekly, the index will incorporate prices for HMS 1&2 ferrous scrap from key eastern, central, and western Saudi markets. It is denominated in Saudi riyals per metric tonne on a delivered basis and calculated using Fastmarkets’ proprietary tonnage-weighted methodology. Along with the national index, Fastmarkets will also report regional scrap prices, enhancing market visibility.

This new benchmark addresses growing demand from industry participants across Saudi Arabia, the Gulf Cooperation Council, and beyond, supporting critical steel-intensive megaprojects such as NEOM, the Mukaab, and the Red Sea Project. These initiatives are central to Saudi Arabia’s Vision 2030, aimed at diversifying the economy away from oil dependence.

Lee Allen, Fastmarkets’ Strategic Markets Editor, emphasized that the index empowers businesses by providing actionable intelligence during a time of significant industrial transformation. This launch complements previous Fastmarkets benchmarks for Saudi steel products, including hot rolled coil and rebar prices.

The introduction of this index is expected to enhance commercial transactions, risk management, and market insight, playing a vital role in Saudi Arabia’s rapidly evolving steel scrap value chain.