Steel demand Seen Rising 8% In Saudi Arabia -SABIC (Another Expected Price Hike For Steel)
By Benny
Posted on : 3/18/2010
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After two years of suffering from the financial crisis, current data indicates that the global world economy had improved.
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After two years of suffering from the financial crisis, current data indicates that the global world economy had improved. This will increase the demand for many goods and obviously the prices will rise. Steel demand is one good example for that.
AL-KHOBAR- The demand for steel in Saudi seen rising by 8 percent with consumption nearing 6.4 million tons this year, resulting in the continuance of rising prices of stainless steel. Based on Wednesday’s News from (SABIC) 2010, the demand for steel in top oil exporter Saudi Arabia is expected to rise this year by 8 percent said.
The kingdom's biggest steel producer’s total production capacity at local plants is 7.3 million tones. The firm is moving ahead with plans to raise annual capacity of long-steel products to 4 million tonnes by mid-2012, from 3.2 million tonnes currently, it added.
Saudi Arabia's domestic steel production capacity will rise by at least 50 percent by 2012, a senior government official told Reuters in December .
SABIC, the world's biggest bulk chemicals firm by market accounts for about half of domestic production capacity with Hadeed.
The state-controlled company said, it will raise prices of steel rebar and wire rod by 100 riyals ($26.7) per tonne due to higher iron ore and scrap metal costs last month.
I am able to foresee this higher demand from Saudi Arabia to con![]() tinue. With booming construction and infrastructure spending, the demand will lift like anything. It will be a great boon for the exporters to get a new leads with Middle East companies. RecycleinMe has more than 100+ companies have been registered as buyers for this type of scrap steel and more that 120+ have registered as a suppliers. Based on the analyst’s thoughts, this rising demand will allow steel producers to hike the prices for scrap and recyclable steel this year.
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About the author:
For the past three years I have been working for RecycleinME
.To help our valued members of RecycleinME, I involved in researching the current
market trend of various scrap materials.
Regards
Benny
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