Report Overview

Saudi Arabia Stainless Steel Market – Industry Trends & Forecast Report, 2030

 Saudi Arabia Stainless Steel Market size was estimated at USD 7.19 billion in 2023. During the forecast period between 2024 and 2030, the Saudi Arabia Stainless Steel Market size is projected to grow at a CAGR of 8.89% reaching a value of USD 9.25 billion by 2030. Prominent drivers of the market are the increasing construction and renovation endeavors in both residential and commercial sectors, rising activities related to oil and gas exploration and production, and ongoing advancements in stainless steel manufacturing techniques. In Saudi Arabia, the burgeoning population and heightened construction of buildings stand out as pivotal influencers, particularly due to stainless steel's widespread application in constructing high-rise buildings, bridges, and infrastructure, driven by its structural integrity and aesthetic attributes. Notably, the expansion of oil and gas exploration activities is fostering demand for stainless steel in pipelines, storage tanks, and equipment handling corrosive substances. By volume, the Saudi Arabia Stainless Steel Market size was estimated at 9.11 million metric tons in 2023. During the forecast period between 2024 and 2030, the Saudi Arabia Stainless Steel Market size is expected to expand at a CAGR of 10.01% reaching the volume of 11.45 million metric tons by 2030. The Kingdom's commitment to economic diversification under the Vision 2030 initiative is contributing to a positive market outlook, with investments directed towards infrastructure development in construction projects, transportation, and energy sectors. Also, stainless steel's increasing use in constructing petrochemical plants, resistant to high temperatures and corrosive chemicals, is fortifying market growth. Addressing water scarcity concerns, the focus on desalination projects is propelling stainless steel demand. Ongoing innovations in manufacturing techniques enhance product quality and cost-effectiveness, facilitating the development of new stainless-steel grades with improved properties, expanding applicability across diverse industries, including healthcare infrastructure and consumer goods manufacturing.

Stainless Steel – Overview

Stainless steel, a corrosion-resistant alloy, is widely applied across industries for its strength at high temperatures and modern aesthetic. Its recyclability reduces waste, aligning with eco-friendly practices. The material's smooth surface requires minimal maintenance, offering a prolonged lifespan and cost savings. Its corrosion resistance makes it a staple in kitchenware, medical instruments, and applications like pipelines and offshore platforms. In marine settings, it withstands saltwater corrosion. In Saudi Arabia, the rising demand for stainless steel stems from its durability under harsh conditions. The alloy's versatility, from architectural uses to critical industries, underscores its increasing importance in the Kingdom.

Saudi Arabia Stainless Steel Market

Growth Drivers

Infrastructure Development Boom

The Saudi Arabia Stainless Steel Market is experiencing substantial growth, propelled by an infrastructure development boom. Government investments, improved living conditions, and rising disposable income are driving increased construction spending. Structural steel, known for its strength and durability, is pivotal in industrial structures, substantial bridges, and residential projects. The nation's robust network of steel producers ensures a steady supply of high-quality stainless steel, further fueling market expansion. Despite challenges posed by the COVID-19 pandemic, the ongoing Infrastructure Development Boom positions the Saudi Arabian Stainless-Steel Market for sustained growth and heightened demand, particularly in construction and related sectors.

Focus on Sustainability

Stainless steel, with its chromium-rich, low-carbon composition, embodies a paramount commitment to sustainability. The addition of chromium imparts remarkable corrosion resistance, augmented by elements like molybdenum and nickel. Its adaptability to extreme temperatures renders stainless steel indispensable in diverse industries, particularly in construction, where its strength ensures a prolonged life cycle. Highlighting sustainability, stainless steel emerges as an eco-friendly material, boasting high recyclability with new stainless steel typically comprising 50–80% recycled content. This underscores its pivotal role in fostering sustainable practices across industries, making it a valuable and responsible material in the context of the growing global focus on sustainability.

Challenges

Lack of Technical Expertise and Limited Skilled Workforce

The Saudi Arabia Stainless Steel Market faces challenges due to a lack of technical expertise and a skilled workforce. The intricate nature of stainless steel manufacturing demands specialized knowledge and hands-on skills. The scarcity of qualified professionals hinders the industry's ability to leverage advanced manufacturing techniques, slowing down production processes and potentially affecting the overall quality of stainless steel products. This limitation poses a significant restraint on the market's growth, necessitating investments in education and training to bridge the gap in technical proficiency within the workforce.

Impact of Escalating Geopolitical Tensions on Saudi Arabia Stainless Steel Market

The Saudi Arabia Stainless Steel Market is impacted by geopolitical tensions in several ways. The current global uncertainties, intensified by geopolitical conflicts, have led to a significant surge in raw material prices, particularly affecting stainless steel. The intricate interconnections of global economies and supply chains raise concerns about the availability and pricing of stainless steel in Saudi Arabia. As geopolitical events continue to unfold, the stainless steel market in the region faces increased volatility and disruptions in the supply chain. Effectively navigating these challenges demands strategic resilience and adaptive measures within the Saudi Arabia Stainless Steel Market to mitigate the far reaching consequences of geopolitical tensions.

Saudi Arabia Stainless Steel Market

Segmental Coverage

Saudi Arabia Stainless Steel Market – By Grade

By grade, the Saudi Arabia Stainless Steel Market is divided into 200 Series, 300 Series, 400 Series, and Duplex Series segments. The 300 series segment holds the highest share in the Saudi Arabia Stainless Steel Market by grade. The 300 series, particularly the 300 grade, finds exclusive application in precision components necessitating grinding, honing, and machining, coupled with a demand for excellent corrosion resistance. This alloy exhibits favorable forming properties, making it a preferred choice for aircraft components, valves, shafts, valve sets, gears, and various screw machine products. Within the 300 series, the 304 grade is meticulously tailored for diverse dairy applications encompassing storage and transport tanks, sterilizers, milking machines, homogenizers, rail vehicles, milk trucks, valves, and pipework. Widely recognized as an 18-8 alloy, it extends its utility to the brewing industry, serving in storage and transport carts, fermenters, yeast pans, and piping with equal proficiency.

Saudi Arabia Stainless Steel Market – By Product

Based on product, the Saudi Arabia Stainless Steel Market is bifurcated into Flat (Sheets, Plates, and Coils) and Long (Bars, Rods, and Beams) segments. The flat segment is expected to hold a higher share in the Saudi Arabia Stainless Steel Market by product over the forecast period. The product's exceptional characteristics, including elevated strength, lightweight nature, and remarkable corrosion resistance, particularly against stress corrosion cracking, are anticipated to be key drivers for heightened demand in the foreseeable future. Its widespread utility extends across various industries, encompassing pharmaceuticals, oil and gas, water desalination, as well as the chemical and petrochemical sectors. Also, the flat segment includes sheets, plates, and coils.

Saudi Arabia Stainless Steel Market – By Application

On the basis of application, the Saudi Arabia Stainless Steel Market is divided into Building & Construction, Automotive & Transportation, Consumer Goods, and Mechanical Engineering & Heavy Industries segments.

Competitive Landscape

Major players operating in Saudi Arabia Stainless Steel Market include Saudi National Steel, Hexa United LLC, Baghlaf Steel, Al-Nafie Steel, Alkafaa Company, Saudi Al-Hidaya Company Limited, AL-Najim Saudi International Co Ltd, Shaaban Steel, AL ITTEFAQ STEEL PRODUCTS CO., and Sang Lee Stainless Steel Company Limited. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In November 2023 - East Pipes Integrated Company for Industry (EPIC), an associate of Welspun Corp Ltd in the Kingdom of Saudi Arabia, secured a contract exceeding SAR 440 million with Saudi Aramco for the manufacturing and supply of large diameter steel pipes.

• In September 2023 - Saudi Arabia's Public Investment Fund (PIF) entered into a share purchase agreement to acquire 100% of the Saudi Iron & Steel Company (Hadeed) from the Saudi Basic Industries Corporation (SABIC). Concurrently, Hadeed will acquire 100% of AlRajhi Steel Industries Company from Mohammed Abdulaziz AlRajhi & Sons Investment Company (Rajhi Invest). The deal, subject to approvals and conditions, reflects an implied enterprise value of around SAR 12.50 billion, contributing to the growth of downstream sectors as per Saudi Vision 2030.

Scope of the Report

By Grade

• 200 Series

• 300 Series

• 400 Series

• Duplex Series

By Product

• Flat (Sheets, Plates, Coils)

• Long (Bars, Rods, Beams)

By Application

• Building & Construction

• Automotive & Transportation

• Consumer Goods

• Mechanical Engineering & Heavy Industries

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. Saudi Arabia Stainless Steel Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Infrastructure development boom
         2. Growing industrial sector
         3. Urbanization and rising disposable income
         4. Focus on sustainability
      2. Restraints
         1. Higher cost compared to carbon steel
         2. Limited domestic production
         3. Lack of technical expertise and skilled workforce
         4. Competition from alternative materials
      3. Opportunities
         1. Product diversification
         2. Focus on domestic production
         3. Technological advancements
      4. Challenges
         1. Volatile raw material prices
         2. Geopolitical instability
         3. Stringent quality control regulations
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. Saudi Arabia Stainless Steel Market: Marketing Strategies
5. Saudi Arabia Stainless Steel Market Overview
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Million)
      2. By Volume (Million Metric Tons)
   2. Market Share & Forecast
      1. By Grade
         1. 200 series
         2. 300 series
         3. 400 series
         4. Duplex series
         5. Others
      2. By Product
         1. Flat (Sheets, Plates, and Coils)
         2. Long (Bars, Rods, and Beams)
      3. By Application
         1. Building & Construction
         2. Automotive & Transportation
         3. Consumer Goods
         4. Mechanical Engineering & Heavy Industries
         5. Others
6. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Saudi Arabia Stainless Steel Company Market Share Analysis, 2023
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
7. Impact of Geopolitical Tension on Saudi Arabia Stainless Steel Market
8. Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, and SWOT Analysis)
   1. Saudi National Steel
   2. Hexa United LLC
   3. Baghlaf Steel
   4. Al-Nafie Steel
   5. Alkafaa Company
   6. Saudi Al-Hidaya Company Limited
   7. AL-Najim Saudi International Co Ltd
   8. Shaaban Steel
   9. AL ITTEFAQ STEEL PRODUCTS CO.
   10. Sang Lee Stainless Steel Company Limited
   11. Other Prominent Players
9. Key Strategic Recommendations
10. Research Methodology
    1. Qualitative Research
       1. Primary & Secondary Research
    2. Quantitative Research
    3. Market Breakdown & Data Triangulation
       1. Secondary Research
       2. Primary Research
    4. Breakdown of Primary Research Respondents, By Region
    5. Assumptions & Limitations

*Financial information in case of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable.

List of Figures

Figure 1 Saudi Arabia Stainless Steel Segmentation

Figure 2 Saudi Arabia Stainless Steel Market Value Chain Analysis

Figure 3 Company Market Share Analysis, 2023

Figure 4 Saudi Arabia Stainless Steel Market Size, By Value (USD Million), 2019–2030

Figure 5 Saudi Arabia Stainless Steel Market Size, By Volume (Million Metric Tons), 2019–2030

Figure 6 Saudi Arabia Stainless Steel Market Share, By Grade, By Value, 2019–2030

Figure 7 Saudi Arabia Stainless Steel Market Share, By Grade, By Volume (Million Metric Tons), 2019–2030

Figure 8 Saudi Arabia Stainless Steel Market Share, By Product, By Value, 2019–2030

Figure 9 Saudi Arabia Stainless Steel Market Share, By Product, By Volume (Million Metric Tons), 2019–2030

Figure 10 Saudi Arabia Stainless Steel Market Share, By Application, By Value, 2019–2030

Figure 11 Saudi Arabia Stainless Steel Market Share, By Application, By Volume (Million Metric Tons), 2019–2030

List of Tables

Table 1        Saudi Arabia Stainless Steel Market Size, By Value (USD Million), 2019–2030

Table 2        Saudi Arabia Stainless Steel Market Size, By Volume (Million Metric Tons), 2019–2030

Table 3        Saudi Arabia Stainless Steel Market Share, By Grade, By Value, 2019–2030

Table 4        Saudi Arabia Stainless Steel Market Share, By Grade, By Volume (Million Metric Tons), 2019–2030

Table 5        Saudi Arabia Stainless Steel Market Share, By Product, By Value, 2019–2030

Table 6        Saudi Arabia Stainless Steel Market Share, By Product, By Volume (Million Metric Tons), 2019–2030

Table 7        Saudi Arabia Stainless Steel Market Share, By Application, By Value, 2019–2030

Table 8        Saudi Arabia Stainless Steel Market Share, By Application, By Volume (Million Metric Tons), 2019–2030

Table 9        Saudi National Steel Company Overview

Table 10      Saudi National Steel Financial Overview

Table 11      Hexa United LLC Company Overview

Table 12      Hexa United LLC Financial Overview

Table 13      Baghlaf Steel Company Overview

Table 14      Baghlaf Steel Financial Overview

Table 15      Al-Nafie Steel Company Overview

Table 16      Al-Nafie Steel Financial Overview

Table 17      Alkafaa Company Overview

Table 18      Alkafaa Company Financial Overview

Table 19      Saudi Al-Hidaya Company Limited Company Overview

Table 20      Saudi Al-Hidaya Company Limited Financial Overview

Table 21      AL-Najim Saudi International Co Ltd Company Overview

Table 22      AL-Najim Saudi International Co Ltd Financial Overview

Table 23      Shaaban Steel Company Overview

Table 24      Shaaban Steel Financial Overview

Table 25      AL ITTEFAQ STEEL PRODUCTS CO. Company Overview

Table 26      AL ITTEFAQ STEEL PRODUCTS CO. Financial Overview

Table 27      Sang Lee Stainless Steel Company Limited Company Overview

Table 28      Sang Lee Stainless Steel Company Limited Financial Overview

Table 29      Other Prominent Players Company Overview

Table 30      Other Prominent Players Financial Overview