Saudi Arabia has become one of the largest steel consumers in the GCC region owing to rising steel demand for infrastructure and construction projects. The construction sector in the country is considered as the largest and the fastest growing market in the Gulf region with huge growth potential. Due to increasing steel demand, the country has become one of the favorite destinations for the major steel producers across the world.
Steel consumption in Saudi Arabia has witnessed tremendous growth on the back of rising construction activities
According to "KSA Steel Industry Forecast 2015", the steel consumption in Saudi Arabia has witnessed tremendous growth on the back of rising construction activities, growing investment in railway, infrastructure and road projects, and cheap and reliable energy supply. In 2011, the steel consumption in the country experienced double-digit growth; and in future, the apparent steel consumption is expected to grow at a CAGR 19.5% during 2012-2015.
Steel consumption is expected to grow at a CAGR 19.5% during 2012-2015
As per recently published research findings, long products (including rebar, bar, wire, rod, etc.) account for the major share in production as well as consumption in Saudi Arabia. In long products, rebar steel dominates the total finished steel consumption due to large number of ongoing infrastructure and construction projects in the country. The report covers a detailed analysis of rebar production and consumption in Saudi Arabia. It also covers information on long products, flat products, and tubular products' production and consumption details.
Steel industry in Saudi Arabia is highly import oriented
The report also found that steel industry in Saudi Arabia is highly import oriented as more than half of the steel consumption in the country is met through imports. Our report covers a detailed analysis of steel imports in the country including finished steel, semi-finished steel, ingots, long products, flat products, and tubular products import. In addition, the report covers the major iron and steel exporting countries to Saudi Arabia in which Turkey dominated in terms of iron and steel import while China Mainland in exports of articles of iron and steel in 2010.
After analyzing the industry-specific statistics, it is anticipated that strong demand and soaring domestic steel prices, the share of imported steel is expected to witness an upward trend in the coming years.
Huge opportunities for both existing and new market players
With the industry's immense growth potential, the report foresees huge opportunities for both existing and new market players. Considering the prominent steel industry value-chain determinants like production, consumption, pricing and key players, the report has presented a look at the sector's past, present, and future scenario. The report has also studied how the regulatory environment and initiatives taken by the government are affecting the market. Through the section of steel pricing analysis, the report has tried to provide the reasons behind fluctuating pricing trend in the country.