Saudi Arabia is investing more government spending on socio-economic infrastructure, which in turn is developing the Gulf nation’s steel industry as the region races to diversify its economy, a newly released report from market research firm RNCOS said.
That diversification is driving the demand for both raw and finished steel as it used in new building projects and manufacturing capacities, according to the report, titled “Saudi Arabia Steel Industry Outlook 2020.” Steel is also important for improvements to the nation’s transportation infrastructure, as it’s used in metros, railways and airports.
The report also details increased crude steel production along with finished steel products such as rebar, structural sections, coils, strips, sheets, plates and tubes.
The report said steel production is increasingly important for Saudi Arabia’s construction, infrastructure and manufacturing – as well as the nation’s oil and gas industry, which is still a mainstay of the economy despite diversification.
Such demands mean the market for scrap steel is also increasing even while major Saudi steel industry players refine processes for pumping out new newly forged steel products.
