Domestic steel demand is now projected to reach 24 mln tons by 2035, up from an earlier estimate of 17 mln tons, driven by renewable energy expansion, manufacturing growth, and national mega-projects, according to Engineer Matar Al-Harthi, Executive Vice President for Metals and Mining at the National Industrial Development Center (NIDC).
Speaking at the Third Saudi International Iron & Steel Conference in Riyadh, Al-Harthi said demand has consistently exceeded forecasts. The 2019 national plan projected 2024 demand at 12.4 mln tons, but actual consumption reached 16.2 mln tons, over 30pct higher.
Rising appetite for flat steel and advanced products reflects the growth of new industries such as renewables, autos, and smart construction. To meet this shift, the steel sector has been undergoing a structural transformation under Vision 2030, moving away from low value-added output and losses toward efficiency, integration, and a broader product slate. A key step was the separation of Hadeed from Sabic, positioning the company to compete in higher-value segments.
Since 2019, more than USD 8 bln in investments have flowed into the industry, including the Bab Al-Khair venture between Aramco, Baosteel, and the Public Investment Fund to produce heavy plate. Additional initiatives include consolidating seamless pipe producers, restarting idle plants, and boosting operating efficiency.
Challenges persist, particularly tight and costly scrap supply, skills gaps, and rising imports, which reached six mln tons in 2024. Al-Harthi called for establishing a national scrap-import company to secure raw materials as output expands.
