Saudi steel sector highly competitive, scrap supply chain being developed: Industrial Center official

In an interview with Argaam on the sidelines of the third Saudi International Iron & Steel Conference, Hamdan said that there is a growing interest from international companies in investing in the Kingdom’s steel market.

He pointed out that the availability of scrap metal represents one of the main challenges, as current quantities are insufficient to meet the needs of local manufacturers.

“NIDC, in cooperation with the Ministry of Industry and Mineral Resources, is working on developing an integrated system to regulate the scrap supply chain within the Kingdom. This system will cover collection, processing, and transportation to ensure the availability of raw materials at competitive prices and support the sector’s sustainability,” Hamdan added.

He indicated that domestic demand for steel continued to grow in 2024, reaching around 16 million tons, which reflects the strength of Saudi Arabia’s economic and industrial performance.

Hamdan said demand is primarily driven by economic and industrial growth rates and by large-scale projects. The momentum seen over the past year is expected to continue in the coming years, with demand projected to reach about 26 million tons by 2035.

He added that the steel sector is one of the largest industrial sectors linked to mining in the Kingdom, with a significant contribution to GDP, making it a key driver of national economic growth and an essential component in the Kingdom’s push to localize heavy industries.