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.

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 to 2015.

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. 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.

Source - Herald Online

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