How Saudi Arabia Steel Pipes And Rebars Market Is Positioned?
The Steel pipes and rebars market in Saudi Arabia is growing at a fast pace owning to huge infrastructure spending in the Middle East, thus driving strong demand for steel and fuelling investment in steel projects. Crude steel production in the Gulf Cooperation Council (GCC) is mainly through the Kingdom of Saudi Arabia (KSA).
Furthermore, Saudi Arabia’s network of oil and gas pipes is expanding majorly due to increase in petroleum production, consumption and export which further helps in boosting demand for steel pipes and rebars in the country.
Many new foreign companies as well as domestic companies have expanded their business to cater the rising population in the country. Domestic companies have expanded their presence to international market as well.
Saudi Arabia steel pipes market produced ~ million tonnes steel pipes in 2011 exhibiting a five year CAGR of ~% from 2011 to 2016.
Saudi Arabia Steel Pipes Market Segmentation
By Type of Steel Pipes
Seamless pipes contributed to the sales volume of steel pipes with volume share of ~% in 2016. These pipes are perceived to withstand higher pressure, higher temperature, higher mechanical stress and corrosive atmosphere. The ERW pipes segment contributed ~% of total sales volume in 2016. The SAW pipes segment gained third position with ~% of total sales volume and LSAW pipes segment captured minimal share worth ~% of total sales volume in 2016.
By Type of LSAW Pipes
The non-sour pipes segment contributed with volume share of ~% in 2016 owning to higher production of sweet and light crude oil coupled with cheaper production cost. On the other hand, sour LSAW pipes segment was witnessed to generate ~% volume share in 2016.
By Diameter of LSAW Pipes
LSAW pipes with 24.0-30.0 inches diameter contributed the market by capturing ~% of total sales volume in 2016. LSAW steel pipes of 48.0 inches in diameter contributed ~% of total sales volume in 2016. The remaining ~% include all LSAW steel pipes whose diameter is less than 24.0 inches.
By Grade of LSAW pipes
The X60 and X65 grade contributed the Saudi Arabia steel pipes market by capturing volume share of ~% in 2016. Whereas, B class pipes were able to capture the remaining volume share of ~% in 2016.
By Sectoral Demand
Primarily, oil and gas sector contributed the Saudi Arabia steel pipes market with volume share worth ~% in 2016. Escalating crude oil production coupled with growing deep drilling operations were some of the major factors responsible for the growth of the oil and gas pipelines market in Saudi Arabia. Other sectors such as construction and agriculture sector captured volume shares worth ~% and ~% respectively, in 2016.
By Sectoral Demand for Seamless Pipes
Seamless pipes are crucially used in this sector owning to their strength, resistance to corrosion and longer product life which collectively make these pipes perfect for oil and gas industry. On the other hand, demand for seamless pipes from construction sector was able to capture ~% volume share in 2016.
By Sectoral Demand for LSAW Pipes
Welded pipes are given a preference for hydrocarbon transportation in both sweet and sour conditions which led to ~% of revenue generation for LSAW pipes from hydrocarbons sector. Whereas, demand for LSAW pipes through structural and other demand generating sectors were able to capture the remaining ~% volume share in 2016.
By Sectoral Demand for ERW pipes
Oil and gas sector captured ~% volume share for ERW pipes whereas, other sectors were able to capture remaining ~% volume share in 2016.
Saudi Arabia Steel Rebars Market Segmentation
By Sectoral Demand
Primarily, steel rebars work as a support system for the pipe line system installed in the petrochemical industry which is used for transmission of gases and liquids from one place to another, thus capturing ~% of sales revenue in 2016. The construction sector constituted ~% of total revenues whereas manufacturing and other sectors were collectively able to grab revenue share of ~% in 2016.
By Regional Demand
Riyadh region contributed to the Saudi Arabia steel rebars market with revenue share of ~% in 2016. Rising construction projects such as King Abdullah City of Atomic and Renewable energy, Sudair Industrial City and Riyadh Light Rail Network are responsible for such high share. Dammam followed with revenue share of ~% of the total sales volume whereas, Jeddah and other regions such as Hadeed and Al-Jubail captured the remaining ~% revenue share in 2016.
By Finishing Type
Fabricated rebars contributed the revenues generated through sales of steel rebars with a share of ~% in 2016. These type of rebars are generally used in the construction sector owning to slab-on-ground slabs, where the ground has been well compacted. The epoxy coated segment followed with ~% revenue share. On the other hand, black rebars captured minimal share worth ~% in Saudi Arabia in 2016.
Competition Scenario in Saudi Arabia Steel Pipes And Rebars Market
Saudi Arabia steel pipes market is highly concentrated with the presence of major players such as Arcelor Mittal, Arabian Pipes, National Pipes, Global Pipes and others. Arabian Pipes Co. is leading Saudi Arabia steel pipes market with ~% revenue share, followed by National Pipes with revenue share of ~% in 2016. These companies are facing immense unfair competition from Chinese suppliers.
On the other hand, Saudi Arabia steel rebars market is highly concentrated with the presence of major players such as Atteih Steel, Rajhi Steel, Saudi Iron and Steel Company, Ittefaq Steel, Zamil Steel, Riyadh Steel and others. The construction and infrastructure boom in the country in the past decade majorly contributed to the rapid growth in the industry which led to emergence of several companies in this sector.
Major Players Operating In Saudi Arabia Steel Pipes Market
Arcelor Mittal is the world’s largest steel producer along with annual achievable production capacity of approximately ~ million tonnes of crude steel. Its flat products business constitutes billets, blooms, rebars, wire rod, sections, rails, sheet piles and drawn wires, as well as supplying both seamless and welded tubular products.
Arabian Pipes Co. is manufacturing welded steel pipes for oil and gas, structural and commercial utilization with sizes range from 6.0 to 48.0 inches. The total revenues generated amounts to USD ~ million in 2015 from USD ~ million in 2011, thus growing at a CAGR of ~ % for the period of five years from 2011 to 2015.
National Pipes Co. is the manufacturer of longitudinal seam SAW pipes and helical seam SAW pipes. Its quality management system is based on ISO 9001:2008, 4th edition, and API Q1, 8th edition / ISO TS 29001:2007.
Major Players Operating In Saudi Arabia Steel Rebars Market
Atteih Steel Co. Ltd. offers wide range of products, including structural and commercial steel items, deformed steel bars, metal sheets, beams, bars, pipes, tubes, non-ferrous raw material, special steels and alloys, steel flanges and fittings.
Rajhi Steel Industries Co. Ltd. has an extensive product portfolio constituting major products such as rebars, plain wire rods, rebar coils, rectangular and square tubes, hot rolled steel sheets, cold rolled steel sheets, zinc / electro-galvanized sheets, checkered sheets, galvanized steel sheets, ordinary and insulated corrugated sheets, black pipes and galvanized pipes. It has ~% market coverage for steel rebars in Saudi Arabia steel rebars market.
Al-Ittefaq Steel Products Co. specializes in manufacturing direct reduced iron, long and flat steel products including rebars, coils; wire rods, light sections, hot rolled and galvanized products.
Future Outlook For Saudi Arabia Steel Pipes Market
Over the forecast period, Saudi Arabia steel pipes market will prepare itself to meet the future demand expected from the substantial investment proposed in key areas such as oil and gas segment, construction sector, manufacturing sector, infrastructural development and agriculture. Infrastructure sector is also expected to generate massive demand owning to increasing projects such as construction of dams, power projects, railways, bridges and others which involve a huge quantity of pipes. Demand for agriculture pipes, plumbing pipes and industrial pipes are expected to increase with rise of irrigation potential in Saudi Arabia. Also, the demand for steel pipes installed in manufacturing units or industrial complexes will rise owning to large amount of piping and plumbing to work with various types of fluids and gases. Steel pipes market in Saudi Arabia is expected to sell ~ million tonnes by 2021, thus growing at a CAGR of ~ % for the projected period of four years from 2017 to 2021.
Future Outlook For Saudi Arabia Steel Rebars Market
Booming construction activities in Saudi Arabia will lead to significant demand for steel products including rebars. Growing imports is one of the major growth drivers which will showcase rising demand for steel rebars in future. Saudi Arabia is highly import oriented as approximately ~% of the steel consumption in the country is met through imports from major countries such as China, UAE, Egypt and Turkey. Construction of roads, ports, railway, airports, postal services in the industrial cities of Jubail and Yanbu are expected to further increase the demand for rebars in Saudi Arabia. Announcement of major upcoming projects in mining, construction, industrial and manufacturing sector has created several opportunities for the local or domestic steel manufacturers, thus reducing the country’s import dependency for steel rebars. The rebars sales in Saudi Arabia is expected to generate revenue worth USD ~ million by 2021, thus growing at a CAGR of ~% for the projected period of four years from 2017 to 2021.
Companies Cited in the Report
List of Companies Companies Covered in the Report
Arabian Pipes Co.
National Pipe Co. Ltd
Global Pipe Co.
Saudi Steel Pipe Co.
Welspun Corp. Ltd
Atteih Steel Co. Ltd. Major Players (Steel Rebars)
Rajhi Steel Industries Co. Ltd
Al-Ittefaq Steel Products Co.
Zamil Steel Construction Co. Ltd
Key Topics Covered in the Report
Comprehensive analysis of Saudi Steel Pipes and Rebars market and its segments.
Listed major players and their positioning in the market.
Identified major industry developments in last few years and assessed the future growth of the industry.
Saudi Arabia Rebars Manufacturers
Saudi Arabia Steel Pipe Manufacturers
Steel Pipe Tube Supplier Ksa
Steel Pipe Suppliers in Saudi Arabia
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Ankur Gupta, Head Marketing & Communications