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Saudi Iron and Steel Company (Hadeed) has reduced its domestic scrap buying prices by SAR 70 (USD 19) per ton, effective September 11, amid relatively moderate finished steel demand.
The reduction follows a period of stable scrap procurement prices and comes as the availability of alternative raw materials improves. This could reduce Hadeed’s near-term requirement for ferrous scrap.
The latest move comes after Hadeed kept its September rebar price unchanged while raising wire rod prices by SAR 100-125 per ton from the previous month. The company is offering 12-32 mm rebar at SAR 2,800 (USD 747) per ton CPT Riyadh, excluding VAT, while wire rod prices stand at SAR 2,950 (USD 787) per ton for 7-12 mm and SAR 3,025 (USD 807) per ton for 5.5-6.5 mm.
The recently launched Saudi Arabian Ferrous Scrap Price Index by the National Industrial Development Center (NIDC) puts the general scrap benchmark across the Kingdom at SAR 1,826 (USD 487) per ton, excluding VAT.
Saudi steelmakers continue to face elevated production costs and relatively moderate finished steel demand. Hadeed’s unchanged rebar price suggests that higher input costs have not been fully passed through to finished steel prices.
Hadeed is the GCC’s largest steel producer, with annual production capacity of 3.8 mln tons of long products and 2.2 mln tons of flat products. The company has been owned by Saudi Arabia’s Public Investment Fund (PIF) since May 2024.
1 USD / 3.75 SAR