GURUGRAM, India, August 22, 2017 /PRNewswire/ --
- Increasing usage of polished steel pipes is expected to generate sales for steel pipes in the country.
- Steel manufacturing has been vital to the growth of non-oil-dependent gross domestic product, further serving the economic diversity.
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. The demand for steel pipes used in oil and gas segment is expected to increase owning to their high level of tensile strength and corrosion resistance. Increasing usage of polished steel pipes is another major factor which is expected to generate sales for steel pipes in the country.
On the other side, demand for steel rebars is expected to increase in near future owning to high rate of infrastructural development and construction rate in Saudi Arabia. Steel manufacturing has been vital to the growth of non-oil-dependent gross domestic product, further serving the economic diversity. Mining projects and basic developmental infrastructure projects which are to be launched are further going to boost the demand for steel rebars in near future.
Despite the global economic downturn, the Kingdom plans to expand its petrochemical industry over the next 10 years to build new plants, expand existing ones and integrate refineries with new or existing petrochemical units. Saudi Aramco (the Saudi Arabian oil company) is planning to bring up new refineries and petrochemicals projects in the KSA.
Opportunities exist in the field of applying epoxy coating to steel rebars for which small and medium scale enterprises can be formed for the main purpose of improving the quality of finished steel products, thus creating additional demand for Saudi Arabia steel rebars market in future, according to the Analyst at Ken Research.
Ken Research in its latest study, Saudi Arabia Steel Pipes and Rebars Market Outlook to 2021 - Growth of Construction Sector and Oil & Gas Projects is Likely to Drive Demand suggested that ArcelorMittal and Arabian Pipes Co. will continue their dominance but have to face fierce competition and an expected price war with National Pipe, Global Pipe Co, Saudi Steel Pipe Co and Welspun Corp Ltd for steel pipes market. Saudi Arabia steel pipes market is estimated to register a positive CAGR during 2016 to 2021.
The oil companies operating in Saudi Arabia are trying to gain access to a wide variety of crudes with the help of modern horizontal drilling and hydraulic fracturing techniques which will lead to a higher demand for sour pipes in future. On the other hand, ArcelorMittal and Attieh Steel Co. will further lead in steel rebars market facing fierce competition and an expected price war with Rajhi Steel Industries, Al-Ittefaq Steel Products Co, Zamil Steel Construction Co and Riyadh Steel. Saudi Arabia steel rebars market is also estimated to register a positive CAGR during 2016 to 2021. Announcement of major upcoming projects in construction, industrial and manufacturing sector will be creating several opportunities for the local or domestic steel manufacturers, thus reducing the country's import dependency for steel rebars from major countries such as China and Turkey.
For more information on the market research report please refer to the link below:
Related Reports by Ken Research
The report provides a comprehensive analysis of steel pipes and rebars in the UAE. The report focuses on overall market size for steel pipes and rebars sold in the UAE, market segmentation of steel pipes by type of steel pipes (ERW, seamless, SAW and LSAW), by diameter of ERW pipes (0.25-6.0 inches and 8.0-12.0 inches), by sectoral demand for seamless pipes (construction and oil and gas), by sectoral demand for ERW pipes (construction, oil and gas and others), by regional demand (Dubai, Abu Dhabi, Ajman, Sharjah and others); market segmentation of steel rebars by trade (domestic demand and imports), by sectoral demand (construction, oil and gas, manufacturing and others) and by regional demand (Abu Dhabi, Dubai and other emirates).
Ankur Gupta, Head Marketing & Communications
SOURCE Ken Research