Strong demand is observed for both heavy steel manufacturing and light steel products in Saudi Arabia. Key drivers of this demand include the establishment of new industrial zones and ongoing mega construction projects. Notably, projects such as the Kingdom Tower in Jeddah, planned to be the tallest building in the world, significantly boost the need for steel products. This increase applies to both industrial facility construction and general building activities.
Although minor price fluctuations of 2–3% have been noted, the overall market outlook remains stable. The domestic rebar price is fixed at an average of 2,230 SAR/ton (approximately 604 USD/ton). On the supply side, no shortages are reported; major suppliers such as Al-Rajhi Steel, Al-Jazeera, Alfanar, Saudi Pan Gulf, and Atiya Steel meet most of the local steel product demand.
Despite a temporary slowdown during the Hajj season, the market is expected to quickly rebound after the holiday. Steel sector activity is anticipated to increase steadily over the next 3 to 6 months.
Billet Market and Prices
Recently, imported billet prices have risen due to increased demand. Prices reached around 550 USD/ton CFR Jeddah, marking a significant increase compared to previously reported levels of 480 USD/ton CFR. FOB prices for China-origin products were recorded at approximately 428 USD/ton.
A shipment of about 100,000 tons of billets imported from China at competitive prices has effectively met the short-term demand surge in the country. This increased supply is directly linked to ongoing housing and infrastructure projects in major cities such as Riyadh and Jeddah.
Challenges in Logistics and Raw Material Procurement
Rising logistics and freight costs are identified as primary factors pushing raw material prices higher. Additionally, economic sanctions impacting certain major producing countries and trade routes have affected the sector.
Pressure is felt particularly in the procurement of direct reduced iron (DRI) pellets and scrap materials for import-based raw material supply. According to industry representatives, solutions under consideration include exploring alternative supply sources, increasing domestic production, and accelerating technology investments.
An industry official highlighted that import pressures are significant and emphasized that reducing dependency on imported DRI raw materials has become a strategic necessity.
Hadeed Production Developments and Pricing Policy
Last month, maintenance of the DRI production line at Hadeed’s facility was completed, and production has resumed. The swift completion of this process underscores the company’s urgent need for DRI pellets and commitment to production continuity.
Finally, according to the new prices announced by Hadeed as of June 1, 2025:
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Rebar: 2,230 SAR/ton (~604 USD)
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Coil products: 2,350 SAR/ton (~635 USD)
These prices are set in line with the market’s supply-demand balance and will serve as reference rates in the upcoming quarters.
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