Demand for rebar seen at 7.5M tons this year: NCSI

Jassem Abbas, Vice Chairman of the National Committee for Steel Industry (NSCI)  and General Manager of Sales, Marketing, and Business Development at Al Ittefaq Steel Products Co. (ISPC)

Demand for rebar and steel coils is expected to hit 7.5 million tons in 2024, Jassem Abbas, Vice Chairman of the National Committee for Steel Industry (NSCI)  and General Manager of Sales, Marketing, and Business Development at Al Ittefaq Steel Products Co. (ISPC), said.

In an interview with Argaam on the sidelines of an event organized by the Federation of Saudi Chambers of Commerce, Abbas explained that the demand for rebar during the first half of 2024 was strong.

Demand for steel is stable and is growing on mega projects in the Kingdom, such as the Mukaab project, which consumes no less than 2.2 million tons, in addition to a number of stadiums that are being built and require large quantities of rebar.

When asked about supply chains in the steel sector, Abbas noted that the Kingdom's supply chains rely on two types of raw materials: scrap steel or imported raw materials, mainly from Brazil. Two factories, Al Ittefaq and Hadeed, depend on imported raw materials, while the remaining smelting plants use scrap steel.

Scrap steel currently witnesses significant pressure, leading to shortages and price instability.

Since it is a vital commodity linked to the global market, it plays a major role in stabilizing prices.

However, prices are expected to stabilize during the fourth quarter of 2024.

Abbas pointed out the current global price declines or balance, highlighting that prices and demand in the Kingdom are different from other countries due to future projects and Vision 2030 initiatives.

Moreover, Saudi Arabia's geographic location supports export.

Most factories in Saudi Arabia export internationally, including ISPC, which exports to the Iraqi market, where there is significant reliance on the Saudi steel.

Furthermore, the company exports to Oman, Kuwait, and Bahrain. ISPC is set to send its first shipment to Canada this month.

He noted that the Saudi steel is preferred in many countries worldwide and continues to see steady demand, being used in large-scale projects in neighboring countries.