Local scrap prices down in Saudi Arabia

Domestic scrap purchase prices have been decreased in Saudi Arabia for November restocking. In particular, the country’s largest and key steel producer Hadeed, which is based on DRI usage, has cut its purchase price levels by $8/mt (SAR 30/mt) from last month. “It seems they have [scrap] stock and they need to reduce the production cost,” a representative of a local steel mill told SteelOrbis. According to sources, Hadeed’s purchase prices have nowadays settled at the following levels:

In the meantime, one of the local scrap based steel producers has settled its HMS I/II 80:20 scrap purchase price at SAR 1,200/mt or $320/mt, both on CPT basis. “Our specification is different than Sabic’s since they use only 20 percent scrap and we are 100 percent scrap-based,” the producer explained.