Market Assessment of Hot Dip Galvanizing in Saudi Arabiaadmin2023-09-04T11:10:02-04:00
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
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