Saudi Arabia pilots scrap imports programme

Saudi Arabia has stepped up scrap imports to address a widening supply-demand gap, as the country braces for a critical shortage in the first quarter of 2026.

This comes after the National Industrial Development Center (NIDC)’s proposed two-year plan to establish a privately owned scrap-procurement company with multiple steelmaker stakeholders failed to make progress. Consequently, the government decided to act directly, Kallanish notes.

Saudi steelmakers have received a deadline to submit their monthly scrap requirement for the first pilot imports of scrap from abroad. This will be done through Asas, a wholly owned subsidiary company of MODON, the Saudi government authority responsible for industrial cities and technology zones, Matar Al Harthi, EVP of Minerals & Metals at NIDC, tells Kallanish exclusively.

"Imported scrap will be allocated among steelmakers," he adds.

It is no secret that individual small and medium size – less than 30,000 tonnes/month capacity – steelmakers are unable to book large deep-sea shipments due to capital constraints.

The initiative is intended to temporarily relieve the scrap shortage, but the ultimate goal is to encourage private mills to pool their procurement in order to ensure continuing operation in the long term, he concludes.

This marks a significant milestone for the Saudi steel sector, highlighting government intervention to stabilise the industry and ensure continuity of production.

Source:Kallanish