Though experiencing a production dip in 2023, Saudi Arabia's steel industry remains a formidable and strategically evolving powerhouse, poised for a dynamic future of growth and innovation.
Key Takeaways
- In 2023, Saudi Arabia's crude steel production reached 8.4 million metric tons, marking a 7.7% decline from 2022
- Hadeed (SABIC) produced 4.1 million tons of steel billets in 2022, representing 45% of national output
- Al-Ittefaq Steel Products Company output stood at 2.8 million tons of long steel products in 2023
- Saudi Arabia's installed crude steelmaking capacity reached 12.5 million tons per year in 2023
- Hadeed plans to expand DRI capacity by 2 million tons by 2026 at Jubail
- Al-Ittefaq Steel's new EAF capacity addition of 1.5 million tons commissioned in 2023
- Saudi exports of steel products reached 4.2 million tons in 2023, down 5% from 2022
- Rebar exports from Saudi Arabia totaled 2.1 million tons in 2023 to GCC markets
- Hadeed exported 1.8 million tons of billets to Middle East in 2022
- Hadeed (SABIC) reported SAR 12.5 billion revenue from steel sales in 2023
- Al-Ittefaq Steel Products net profit grew 15% to SAR 850 million in 2023
- Saudi steel industry total revenue reached SAR 45 billion in 2022
- Saudi steel employment totaled 45,000 direct jobs in 2023
- Hadeed employs 8,500 workers with 25% Saudization rate in 2023
- Saudi steel industry contributed 1.2% to national GDP in 2023 at SAR 55 billion value added
The Saudi steel industry is a major national economic force focused on ambitious expansion goals.
Capacity and Expansion
- Saudi Arabia's installed crude steelmaking capacity reached 12.5 million tons per year in 2023
- Hadeed plans to expand DRI capacity by 2 million tons by 2026 at Jubail
- Al-Ittefaq Steel's new EAF capacity addition of 1.5 million tons commissioned in 2023
- National Steel Company capacity utilization rate was 78% in 2023 for its 2.5 Mtpa plant
- Saudi Arabia aims for 20 million tons steel capacity by Vision 2030
- Zamil Steel expanded pre-engineered building capacity to 200,000 tons annually in 2024
- Rashee Steel's rolling mill capacity increased to 1.5 Mtpa after 2023 upgrade
- Hadeed's billet casting capacity stands at 5.5 million tons per annum
- Al-Tuwairqi Steel's DRI plant capacity is 2.0 million tons yearly at Dammam
- Saudi Pipe Systems Co capacity for ERW pipes is 400,000 tons pa
- New flat steel mill project by Baosteel-Saudi JV with 6 Mtpa capacity planned for 2027
- Hadeed's utilization rate for EAFs was 82% in 2023
- Saudi Industrial Development Fund allocated $2.5B for steel capacity expansions in 2023
- Zamil Industrial's steel fabrication capacity boosted to 250,000 tons in 2023
- Rashee Steel's new continuous casting machine adds 500,000 tons capacity
- National capacity for galvanized products is 2.0 Mtpa across major players
- Hadeed MIDREX Plant 4 capacity of 2.1 Mtpa DRI operational since 2022
- Saudi steel sector capacity utilization averaged 70% in 2023 due to regional competition
- Al Rajhi Steel new rebar mill capacity 1.0 Mtpa started in 2024
- Total EAF capacity in Saudi Arabia is 11.0 million tons as of 2023
- Saudi Aramco's steel requirements drive 3 Mtpa dedicated capacity growth by 2025
- Deformed bar rolling capacity nationwide is 6.5 Mtpa in 2023
- Hadeed's slab caster capacity expansion to 3.0 Mtpa by 2025 announced
Capacity and Expansion Interpretation
While Saudi steelmakers are forging ahead with ambitious expansion plans, their current furnaces are only about three-quarters full, suggesting they're building the castle before fully securing the kingdom.
Employment and Sustainability
- Saudi steel employment totaled 45,000 direct jobs in 2023
- Hadeed employs 8,500 workers with 25% Saudization rate in 2023
- Saudi steel industry contributed 1.2% to national GDP in 2023 at SAR 55 billion value added
- Al-Ittefaq Steel has 6,200 employees, targeting 35% localization by 2025
- Renewable energy integration in Saudi steel plants reduced CO2 by 15% in 2023
- Zamil Steel workforce of 4,000 supports 10,000 indirect jobs in supply chain
- National Steel Company Saudization at 28% with 2,100 employees in 2023
- Saudi steel scrap recycling rate reached 92% in 2023, minimizing landfill waste
- Vision 2030 steel projects to create 20,000 new jobs by 2027
- Hadeed's water recycling rate is 98% in DRI production processes 2023
- Al-Tuwairqi employs 3,500 with training programs for 500 Saudis annually
- Saudi steel GHG emissions per ton of steel fell 12% to 1.1 tCO2e in 2023
- Rashee Steel's 1,800 workers achieved 30% Saudization milestone in 2023
- Industry energy efficiency improved 10% via EAF upgrades in 2023
- Saudi Pipe Co employs 1,200, contributing to local content 75% in 2023
- Green steel initiatives secured $1B funding for hydrogen-based reduction by 2030
- Total indirect employment from steel sector estimated at 150,000 in 2023
- Hadeed invested SAR 300 million in employee training in 2023
- Saudi steel dust recycling recovers 95% zinc content annually
- Al-Ittefaq CSR spending SAR 50 million on community and environment in 2023
- Female employment in steel admin roles rose to 15% in 2023
- Carbon capture pilot at Hadeed captured 100,000 tons CO2 in 2023
- Zamil Steel's zero-waste target achieved 85% diversion rate in 2023
- Saudi steel R&D centers trained 2,000 engineers on Industry 4.0 in 2023
- National steel biodiversity program restored 500 hectares around plants in 2023
- Al Rajhi Steel created 1,000 jobs with new mill commissioning in 2023
Employment and Sustainability Interpretation
The Saudi steel industry is forging a surprisingly green and ambitious future, proving that building a stronger economy and a sustainable environment are not mutually exclusive, but can be hammered out together with impressive results like 92% scrap recycling, 15% female employment, and a 12% drop in emissions.
Export and Import Volumes
- Saudi exports of steel products reached 4.2 million tons in 2023, down 5% from 2022
- Rebar exports from Saudi Arabia totaled 2.1 million tons in 2023 to GCC markets
- Hadeed exported 1.8 million tons of billets to Middle East in 2022
- Saudi wire rod exports grew 10% to 450,000 tons in 2023
- Imports of hot-rolled coils into Saudi Arabia were 1.5 million tons in 2023
- Al-Ittefaq exported 1.2 million tons of sections to Europe in 2023
- Saudi DRI exports reached 800,000 tons in 2022, primarily to Turkey
- Total steel imports declined 12% to 2.8 million tons in 2023
- Zamil Steel exported 100,000 tons of PEB structures to Africa in 2023
- Saudi pipe exports for oil & gas were 150,000 tons in 2023
- Merchant bar exports from Saudi hit 300,000 tons in 2022
- Imports of galvanized steel sheets rose 8% to 600,000 tons in 2023
- Hadeed's billet exports to Jordan and Egypt totaled 900,000 tons in 2023
- Saudi steel exports to USA increased 20% to 200,000 tons in 2023
- Rebar import dependency fell to 10% with domestic supply at 4.5 Mt in 2023
- Al-Tuwairqi exported 500,000 tons of long products to Levant in 2023
- Saudi HRC imports mainly from China at 1.2 Mt in 2023
- Wire exports to Kuwait reached 150,000 tons in 2022
- Total export value of Saudi steel products was $2.1 billion in 2023
- Imports of steel plates dropped 15% to 250,000 tons in 2023
- Saudi DRI exports to India surged 25% to 300,000 tons in 2023
- Galvanized pipe exports totaled 100,000 tons in 2023
- Hadeed's export share of production was 35% in 2023
- Saudi steel trade surplus widened to 1.4 million tons in 2023
- Section exports to UAE were 400,000 tons in 2023
- Rashee Steel exported 600,000 tons of rebar regionally in 2023
Export and Import Volumes Interpretation
While Saudi Arabia's steel exports softened by 5% overall, the kingdom artfully rebalanced its industrial portfolio, strategically swapping volume for market diversification and product specialization, emerging as a net exporter with a sharpened, rather than diminished, global edge.
Financial Performance
- Hadeed (SABIC) reported SAR 12.5 billion revenue from steel sales in 2023
- Al-Ittefaq Steel Products net profit grew 15% to SAR 850 million in 2023
- Saudi steel industry total revenue reached SAR 45 billion in 2022
- Zamil Steel Holding EBITDA was SAR 450 million in 2023
- Hadeed's EBITDA margin stood at 22% in 2023 amid high DRI costs
- National Steel Company turnover SAR 3.2 billion with 12% profit margin in 2023
- Saudi steel sector capital expenditure totaled SAR 5.8 billion in 2023 for expansions
- Al-Tuwairqi Steel net income SAR 420 million in 2022
- Rashee Steel revenue SAR 2.1 billion from 1.2 Mt rebar sales in 2023
- Saudi Pipe Company profits rose 18% to SAR 280 million in 2023
- Average steel selling price in Saudi market was SAR 2,800/ton for rebar in 2023
- Hadeed debt-to-equity ratio improved to 0.35 in 2023
- Al-Ittefaq market cap reached SAR 15 billion on Tadawul in 2023
- Saudi steel exports generated $1.8 billion forex in 2023
- Zamil Industrial net profit SAR 320 million from steel segment in 2023
- Industry-wide operating margin averaged 18% in 2023 despite import pressures
- Hadeed invested SAR 1.2 billion in maintenance capex in 2023
- Saudi steel firms paid SAR 2.5 billion in dividends in 2023
- Rebar price realization for Al-Ittefaq averaged SAR 2,950/ton in 2023
- Total assets of major Saudi steel companies exceeded SAR 60 billion in 2023
- Rashee Steel ROE was 25% in 2023
- Saudi steel R&D spending reached SAR 450 million in 2023
- Hadeed cost per ton of DRI production was SAR 1,200 in 2023
- Al Rajhi Steel generated SAR 1.5 billion revenue in first year 2023
- Industry tax contributions from steel sector SAR 3.1 billion in 2023
Financial Performance Interpretation
Amidst a desert of high production costs and import pressures, the Saudi steel industry has proven to be a formidable fortress, forging impressive profits, rewarding investors, and driving national growth with the resilient heat of a well-stoked blast furnace.
Production Output
- In 2023, Saudi Arabia's crude steel production reached 8.4 million metric tons, marking a 7.7% decline from 2022
- Hadeed (SABIC) produced 4.1 million tons of steel billets in 2022, representing 45% of national output
- Al-Ittefaq Steel Products Company output stood at 2.8 million tons of long steel products in 2023
- Saudi Arabia's direct reduced iron (DRI) production hit 5.9 million tons in 2022, led by Hadeed's MIDREX plants
- Zamil Steel manufactured 150,000 tons of pre-engineered buildings steel in 2023
- In Q1 2024, national hot-rolled coil (HRC) production increased by 12% to 450,000 tons
- Rashee Steel's rebar production reached 1.2 million tons annually in 2023
- Saudi Steel Pipe Company produced 300,000 tons of welded pipes in 2022
- National production of wire rods grew 8% to 1.1 million tons in 2023
- Hadeed's slab production was 2.3 million tons in 2023 from its Jubail plant
- In 2022, Saudi Arabia ranked 19th globally in crude steel production with 9.1 million tons
- Al-Tuwairqi Steel produced 1.5 million tons of billets in 2023 at its Dammam facility
- Deformed bars production totaled 4.2 million tons across Saudi mills in 2023
- Saudi Arabia's electric arc furnace (EAF) steel output was 7.8 million tons in 2022
- National Steel Company's contribution to rebar was 800,000 tons in 2023
- In 2023, Hadeed's DRI output from Plant 3 reached 2.1 million tons
- Saudi steel sections production hit 900,000 tons in 2022
- Arab Steel Company's flat products output was 500,000 tons in 2023
- Total galvanized steel production in Saudi Arabia was 1.4 million tons in 2023
- In 2022, Saudi pipe production for oil & gas reached 250,000 tons
- Hadeed's wire rod mill produced 650,000 tons in 2023
- Saudi Arabia's structural steel fabrication output was 1.2 million tons in 2023
- In Q4 2023, rebar production surged 15% to 1.1 million tons
- Al-Ittefaq's merchant bar production was 400,000 tons in 2022
- National H-beam production reached 300,000 tons in 2023
- Saudi coil coating production output was 800,000 tons in 2023
- In 2023, DRI-based steel production constituted 85% of total output
- Rashee Steel's billet casting output hit 1.0 million tons in 2023
- Saudi steel plate production totaled 600,000 tons in 2022
- Zamil Steel's hollow sections production was 200,000 tons in 2023
Production Output Interpretation
While an overall dip in crude steel might suggest a softening market, the robust growth in key segments like rebar and HRC reveals an industry strategically bending, not breaking, as it reforges itself around specialized domestic needs and DRI-led efficiency.
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