Saudi Arabia Ferrous Scrap Recycling Market Outlook: Growth Trends and Future Opportunities

According to IMARC Group's latest research publication, Saudi Arabia ferrous scrap recycling market size reached USD 1.38 Million in 2024. The market is projected to reach USD 2.15 Million by 2033.

How AI is Reshaping the Future of Saudi Arabia Ferrous Scrap Recycling Market

• AI-Powered Sorting Systems: Computer vision algorithms automate material classification, boosting recycling efficiency by 40% and reducing contamination rates in sorting facilities across the Kingdom.
• Predictive Maintenance for Processing Equipment: Machine learning monitors shredders and separation systems in real-time, anticipating failures and cutting unplanned downtime by up to 25% at major recycling plants.
• Automated Quality Control: AI-driven sensors instantly detect metal purity and composition, ensuring recycled materials meet SASO standards while reducing manual inspection time and improving output consistency.
• Smart Waste Tracking Platforms: Digital systems using AI track scrap flows from collection to processing, optimizing logistics routes and improving inventory management for major processors handling millions of tons annually.

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Saudi Arabia Ferrous Scrap Recycling Market Trends & Drivers:

The Saudi ferrous scrap recycling market is expanding rapidly as electric arc furnace (EAF) adoption accelerates across steel production. EAF technology, which relies heavily on scrap inputs rather than virgin iron ore, reduces carbon emissions by approximately 70% compared to traditional blast furnaces. Major processors like Al Qaryan Group now handle 1.5-1.7 million tons of steel scrap annually from a total domestic supply of 4-4.5 million tons, demonstrating the scale of operations. The shift to EAF production aligns with decarbonization goals while cutting production costs for steelmakers. Rising induction furnace capacity now represents 35% of domestic steel production, intensifying competition for available scrap and driving investments in advanced shredding, sorting, and separation technologies. Fastmarkets' August launch of Saudi Arabia's first ferrous scrap price index brings unprecedented market transparency, attracting investors and enabling standardized contracts that facilitate trade and investment decisions.

Construction and demolition activities across the Kingdom generate enormous volumes of recoverable steel from beams, reinforcement bars, and structural components. Major urban redevelopment projects in Riyadh, Jeddah, and Dammam produce substantial scrap streams that recyclers systematically collect and process. Al Qaryan Group has strategically invested in specialized demolition capabilities, recognizing that large-scale teardowns require technical expertise to maximize material recovery. The automotive sector is also contributing significantly as end-of-life vehicle recycling programs expand, with pilot initiatives processing tens of thousands of vehicles annually. Industrial machinery from oil, gas, and petrochemical facilities provides another critical source as equipment is decommissioned and upgraded. Companies are now integrating full-cycle services—from material evaluation and demolition to processing and trading—creating vertically integrated operations that enhance efficiency and profitability while supporting Vision 2030's resource circularity objectives.

Regulatory frameworks are strengthening industry structure and compliance standards. The Ministry of Environment, Water and Agriculture, along with MWAN, has introduced stricter waste segregation mandates requiring industries in construction, automotive dismantling, and manufacturing to partner with certified recycling firms. SASO is implementing quality benchmarks for recycled materials, ensuring outputs meet specifications for reuse in steel production and other applications. Environmental reporting requirements are becoming standardized, creating formalized ecosystems where licensed operators can compete on quality and service rather than informal practices. Despite these advances, challenges remain: diesel prices surged over 40% in January 2025, significantly raising transportation costs; scrap-rebar price spreads have narrowed to SAR 483-703 per ton, well below the traditional SAR 940 target, squeezing margins; and competition from imported billets (approximately 1 million tons in the first half of 2025) impacts local scrap demand. Yet sustained government support, expanding infrastructure projects, and growing circular economy awareness position the sector for continued growth.

Saudi Arabia Ferrous Scrap Recycling Market Industry Segmentation:

The report has segmented the market into the following categories:

Type Insights:

• Heavy Melting Steel
• Old Car Bodies
• Cast Iron
• Pressing Steel
• Others

Application Insights:

• Parts of Machine Tools
• Parts of The Engine
• Aircraft Parts
• Others

End User Insights:

• Construction
• Automotive
• Shipbuilding
• Equipment Manufacturing
• Consumer Appliances
• Others

Regional Insights:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Recent News and Developments in Saudi Arabia Ferrous Scrap Recycling Market

• March 2024: Al Qaryan Group commissioned a state-of-the-art shredding and sorting plant, increasing annual processing capacity to over 1 million tons of ferrous and non-ferrous scrap, strengthening its position as the Middle East's largest scrap processor.
• August 2024: Fastmarkets launched the world's first Saudi Arabian Ferrous Scrap Index, providing weekly price transparency for HMS 1&2 scrap across Riyadh, Jeddah, and Dammam markets, attracting domestic and international investors.
• January 2025: ARM Metal Recycling invested in high-capacity shredders and advanced metal separation systems to boost processing capabilities and meet growing regional demand for recycled ferrous scrap.
• June 2024: Reviva, a Saudi Investment Recycling Company subsidiary, signed an agreement to establish a USD 8 million marine and industrial waste recycling plant at Jeddah Islamic Port, advancing Vision 2030 waste management goals.
• Early 2025: Al Qaryan Group expanded its induction furnace steel billet production capacity in Dammam, reinforcing vertical integration from scrap collection through steel manufacturing in the Eastern Province.

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