Blog - Saudi Arabia Seamless Steel Pipes And Tubes Market Secrets

2021-03-18

The Saudi Arabia Steel Pipes And Tubes Market is one the fastest growing countries in the Middle-East region through establishments of new production

The Saudi Arabia seamless steel pipes & tubes are valued at US$ XX Million in 2021 and are estimated to grow at a CAGR of XX% over the forecast period to reach US$ XX Million by 2029.

Saudi Arabia is one the fastest growing countries in the Middle-East region through the establishment of new production plants for various business units to meet the ongoing demand from the middle-east and African regions. The demand for oil country tubular goods (OCTG) and line pipes in Saudi Arabia are expected to remain strong in the next five years supported by the development of oil and gas drilling and infrastructure. Increasing establishments of new production plants in the chemical, food processing, and automotive across the country coupled with rising the utilization of seamless steel in construction activities are major factors driving the Saudi Arabia seamless steel pipes & tubes market during the forecast period.  In June 2019, UK-based chemical firm Ineos invested USD 2 billion to establish a new production plant in Saudi Arabia at Jubail 2 petrochemical complex.

The key players operating in the Saudi Arabia seamless steel pipes & tubes market include Santok Steel Corporation, Al Ashrak Group, Victor Steel Corporation, and Metline Industries, among many others. The global seamless steel and steel companies are focusing on improving their presence in industrially developing countries such as Saudi Arabia through the acquisition of a majority of stake in the company. In February 2019, Tenaris S.A. acquired a substantial stake in the Saudi Steel Pipe Company ( a major producer of welded pipe in Saudi Arabia) to increase its industry fourfold in the country. 

Saudi Arabia has two seamless pipe mills (Arcelor Mittal and JESCO) with a combined theoretical capacity of 1 million tonnes, and with the possibility of a third seamless tubing mill – from the Gulf Tubing Company - in planning it may be hard for local producers to expand regional market share. While national oil companies in the GCC, such as Saudi Aramco, Qatar’s RasGas, the UAE’s Adnoc, and British Petroleum in Oman, are increasing drilling in sour gas fields. This creates a growing demand for seamless steel pipes over the next five years, which may create opportunities for local, small-capacity production or finishing facilities to increase higher alloy-grade output.

Covid-19 impact on Saudi Arabia's Seamless Steel tubes & pipes market

The majority of Saudi Arabia's Seamless steel pipe & tube market is dependent on the new production plant establishments, the construction industry, and oil & gas pipeline expansions. The oil & gas sector is one of the major consumers of steel for drilling, and pipeline development, it is expected to experience industry contraction due to a plunge in oil prices and disputes in production levels. This pandemic is predicted to affect the ongoing construction and development projects, while the majority of the companies are focusing on attaining sustainability in the business during the lockdown period. Reducing transportation activities across the borders due to the presence of risk contraction of the virus is expected to affect the import and export of seamless steel pipes from Saudi Arabia during the next 18 months. 

New Industrial Investments in Egypt

In July 2019, Saudi awarded USD 18 billion to increase the oil field production capacity in Marjan and Berri oilfields. In November 2019, ENOC is currently undertaking a USD 1 billion expansion program to boost the refinery capacity by 50% to 210,000 b/d and meet Euro 5 emission standard. In November 2019, Baker Hughes invested in the establishment of the first chemical manufacturing facility in Saudi Arabia in PlasChem Park Location in Jubail. During the period 2020-2030, Saudi Arabia is seeking to attract USD 427 billion in private investments and a total of USD 450 billion by 2030 as part of the industrial development program.

In July 2019, Swiss-head quartered petrochemicals Group Ineos is expected to invest USD 2 billion for the establishment of three new production facilities in Saudi Arabia’s Jubail 2 complex. In November 2019, Saudi Arabia made more than USD 2 billion deals with German BASF, Anglo-Dutch Shell, Japanese Mitsui & Co, French SNF, and Dutch Advanced Metallurgical Group (AMG) for the establishment of new facilities which include a new polyacrylamide plant and an ammonia project in Jubail. 

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