Saudi Arabia’s Copper Scrap and Waste Market Outlook Report

Product Description

With a GDP of over $793 billion in 2019, Saudi Arabia was the largest economy in the region that year. The country’s economy, the second richest country in terms of natural resources, is heavily dependent on oil, its main natural resource. But since the introduction of the 2030 Vision in 2016, the country has determined to minimize oil reliance; it has made significant investments in downstream oil sectors, especially petrochemicals. Thus, with the development of energy-intensive industries like petrochemicals and the development and optimization of infrastructure, the wire and cable industry has grown significantly. As a result, the copper industry has been established in the country. However, with the absence of rich copper resources, developments have been limited. Copper production has mostly been justified with gold as a by-product.

Market drivers of Saudi Arabia’s copper scrap

Construction growth and the development of power infrastructure will boost demand for copper and alloy RBS, which are major scrap consumers. Moreover, scrap is a secondary source following mine production in global markets. It should be noted that global demand for copper is outpacing mine supply, widening the gap between supply and demand, which can be filled with scrap. Thus, many are forecasting stronger global demand for copper scrap.

With the growing importance of preserving mine resources and the changing attitude towards environmental conservation, secondary sources will gain momentum. As a result, recycling will become increasingly important, pushing collection rates higher and supporting demand for scrap. Natural resources and environmental protection are in the spotlight in Saudi Arabia; this will boost the effectiveness of the environmental factor.

Currently, due to the high copper prices, the consumption of copper in some applications has been replaced with other metals such as aluminum and zamak. With forecasts of higher copper prices in the future, the trend is expected to continue; this will dampen demand growth for copper and scrap.

Overview of Saudi Arabia’s copper scrap market

Unwrought producers in Saudi Arabia, especially producers of billets and ingots, are the major consumers of copper scrap. As unwrought output increased over the recent years, scrap demand surged; as a result, the growth of scrap exports slowed. But as more goods are scrapped over the coming years with the economic recovery, supply is expected to increase as collection rates rise. On the other hand, scrap demand will also increase along with the growing demand for copper semis (especially RBS). Thus, the increased domestic supply will mostly be consumed domestically, with a limited effect on trade balance.

Breakdown of Saudi Arabia’s copper scrap market

Saudi Arabia’s copper scrap supply is broken down into old and new scrap. Demand is also analyzed based on three factors. In the first breakdown, copper scrap is categorized according to composition: non-alloy, brass, and alloy (excluding brass); past and future trends for each category have been analyzed. The second factor breaks down the market into cathode scrap, bare bright scrap, telecom scrap, heavy scrap, winding wire scrap, and radiator tube scrap. Finally, the third factor makes a distinction based on the type of consumers, including producers of cathode (to produce anode), unwrought products, wire rod, tubes, and casting parts. Unwrought producers hold the largest share in scrap consumption.

Key players in Saudi Arabia’s copper scrap market

• Saudi Electric Industries Co.
• Saudi Mechanical Industries Company (SMI)
• Aboura Metals
• Arab Academy Inc.
• Services Specialist Trading Establishment
• Anwaar Group
• Mahaver Trading Company