Market Assessment of Hot Dip Galvanizing in Saudi Arabia

• KSA is the largest steel market in the GCC region accounting more than 50% of the demand (11 Mn tons per year)
• The per capita consumption of steel is highest in the UAE, with a figure of 689.4 kg per person. Qatar follows closely with 519 kg per person, and Kuwait ranks third with a per capita consumption of 360.2 kg per person.
• The KSA market for Hot Dip Galvanizing (HDG) steel in 2022 was estimated at 349 thousand tons and USD 126.1 million. The market grew at a healthy growth rate of 13.7% (by volume) between 2020 and 2022. The HDG market is expected to maintain healthy growth rate mainly due to strong demand in infrastructure and building construction segments.
• Large fabrication companies such as Zamil and AIC are responsible for performing in-house galvanization. However, the majority of the HDG market, over 66%, is controlled by specialized HDG players who provide outsourced galvanization services. On the other hand, in-house galvanization accounts for approximately 33% of the market share
• HDG suppliers in the KSA are mainly based in industrial regions – East (Dammam) and Central (Riyadh). There are more than 12 HDG steel companies with combined capacity of 634 thousand tons operating in the country. The country produced 349 thousand tons of HDG steel in 2022

Table of Content:

Macro overview of KSA and Steel Sector Analysis

• Macroeconomic activities:
  • GDP;
  • GDP by sector; and
  • Inflation rate and the unemployment rate.

The Regulatory Environment and Market Value Chain Analysis (as manufacturing unit will be in Bahrain)

• Key regulations pertaining to manufacturing steel and steel processing plants in Bahrain; and
• Key regulations pertaining to coating and galvanization in Bahrain

KSA Steel Sector

• KSA steel sector overview:
  • Overall steel sector in the country and its contribution to the GDP;
  • Steel sector value chain with a focus on galvanization elements; and
  • Key stakeholders in KSA.
• Steel galvanization and coating sector value chain:
  • Key stakeholders in Saudi Arabia;
  • Type of players (such as integrated players, coating providers, fabricators, and construction contractors)
  • Various steel coating processes including galvanization; and
  • Popular galvanization process in the country.

Galvanized Steel Demand Assessment (2021A – 2026F)

• By type:
  • Hot-dip galvanized steel;

• By end-use sector:
  • Construction;
  • Fabrication; and
  • Others
• By sales channel:
  • Direct (manufacturer/distributor/fabricator); and
  • Aftermarket

Galvanized Steel Supply Assessment

• Key manufacturers of Hot Dip Galvanized (HDG) steel in KSA for the fabrication and construction sector;
• Total number of players in the country;
• Annual supply capacity of the key players in the market; and
• Total supply of HDG steel in the country.

Galvanized Steel Demand and Supply Assessment

• Based on the inputs obtained during the demand and supply analysis, we will arrive at a demand-supply gap in the market regarding volume; and
• Provide conclusions of the demand and supply assessment for the industry.

Trade Analysis

• Imports of HDG steel products (2017-2021);
  • Source of import countries;
  • Average quantity and value of exports;
  • Average price points of the imports; and
  • Key importers.
• Exports of HDG steel products (2017-2021);
  • Key destinations; and
  • Average quantity and value of exports.

Competition Landscape

• Key hot dipped galvanized steel suppliers in KSA focusing on the construction sector;
  • Market share analysis;
  • Profile of 3 key suppliers;
    • Overview;
    • Products and services;
    • Key industry segments catered;
    • Pricing;
    • Key financial statistics (to the extent of the data availability);
    • Key strategies;
    • Latest updates; and
    • Future plans.

Market Dynamics

• Key demand drivers of HDG steel in KSA with a focus on the construction and fabrication sector;
• Major challenges such as the sourcing of raw materials, and skill retention; and
• Latest trends in the market including future trends for galvanization and coating applications.

Export Opportunity Analysis

• Export opportunity in the GCC countries (quantities and potential value of the exports from KSA)
• Other key export markets (will be provided at a high level based on the trade volume)

Market Conclusions 

• Investment drivers;
• Investment inhibitors;
• Critical success factors and risks; and
• Porter’s five forces analysis / SWOT analysis;

Opportunity Assessment

• Overall market attractiveness;
• Potential for a new entrant;
• Cost analysis: Project CAPEX including major equipment expenditure costs;
• Overall project opportunity size for the client; and
• Implementation roadmap.