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Saudi Arabia has the world’s largest oil reserves and is the world’s largest oil producer and exporter
Steel and ductile foundry and other industries like Oil account for 95% of exports and 70% of the government’s income
In addition, the country is the largest supplier of imported oil to the US (accounting for about 50% of US import demand)
Oil has made Saudi Arabia one of the richest countries in the world, and with these huge oil revenues, the country is looking to modernize rapidly
The development of urban construction and the establishment of a railway network have made the country the largest steel consumer market in the Middle East
Non-oil exports on Saudi Arabia’s agenda Under its macro policy, Saudi Arabia plans to reduce its dependence on oil export revenues over the next 10 years and instead put non-oil exports, including steel, on its agenda
Significant growth in steel demand and its increased production will make Saudi Arabia the largest growth market for steel capacity by 2025 and possibly the largest steel consumer in the Middle East
At present, the Saudi steel industry is dependent on imports, and half of the country’s steel needs come from imports, but from 2025, when new Saudi steel mills are put into operation, the country’s import needs will decrease
According to the country’s future plans for infrastructure development, Saudi Arabia’s steel industry tends to produce industrial products rather than construction; currently, the country plans to produce heavy sections and railway rails
The “Land Bridge” railway project, which serves as a bridge connecting the city of Jeddah on the Red Sea coast with the cities of Dammam and Jubir on the Persian Gulf, is one of these infrastructure projects
The main purpose of building this railway line is to transport iron ore and steel between ports in the western and eastern provinces of Saudi Arabia
Construction projects are another source of steel consumption in the country, accounting for a large part of steel demand
Currently, the demand for steel in Saudi Arabia is around 12 to 14 million tons per year
Saudi Arabian crude steel producers currently have a production capacity of 8 million tons/year, and demand for steel products is expected to be used for large public projects, and transportation (north-south railway network and Mecca, Riyadh, and Jeddah), and more importantly, all residential projects
There is a significant increase
Luxury projects such as “Jeddah Tower”, a complex with a height of about 1007 meters and 200 floors, are known as the throne of the world (the tower is the first building in the world with a height of more than 1 km limit), also built in Saudi Arabia the middle
This ambitious project and projects like it are responsible for the growth in steel consumption in the country’s construction industry
Like other countries in the Persian Gulf, crude steel production in Saudi Arabia is based on direct recovery and the use of sponge iron due to the availability of cheap energy and natural gas
Saudi crude steel production technology is continuous casting, 100% production using an electric furnace (EF)
The average production of sponge iron in Saudi Arabia is about 5 million and 500,000 tons, most of which is used for crude steel production in the country, and its trade is insignificant
Saudi Arabia is the third largest producer in the Middle East after Turkey and Iran
Countries in the region accounted for a share of Saudi Arabia’s total crude steel production, which averaged 5 million tons per year and 400,000 tons in 2010–2016, and accounted for an average of 8% of the Middle East crude steel production (including Turkey)
Excluding a small drop in production in 2015, the country’s crude steel production has been stable for the past seven years
In recent years, the development of large projects in Saudi Arabia has faced many problems
One of the country’s $3 billion mega steel projects originally planned for “Shah Abdullah Economic City” was canceled in 2013, according to official reports
In the same year, SABIC Group decided to invest $2
4 billion to build 2 steel projects, but the plan was suspended as further feasibility studies were carried out
Falling oil prices and challenges facing US Shell appear to favor OPEC and its most powerful member, Saudi Arabia
On the other hand, OPEC members’ incomes have also decreased with the drop in oil prices
Saudi Arabia is under intense pressure as the government tries to cut soaring spending by 10 percent to minimize the budget deficit
The International Monetary Fund predicts that Saudi Arabia’s budget deficit will be as high as 20% of GDP
This problem manifests itself in different ways
Not only has the Kingdom of Saudi Arabia been forced to cut spending, it has also had to tap into the macro bond market
Low oil prices forced Saudi Arabia to sign bonds with maturities of more than 12 months for the first time in eight years, worth about $10 billion so far
At the same time, the value of the country’s currency has come under increasing pressure
The Saudi government has so far tried to keep the rial stable against the dollar, but a continued drop in oil prices could force the government to devalue its currency against the dollar
The continuation of this process will draw the world’s attention to Riyadh to see what strategies the Saudis have to prevent the situation from getting worse
Most OPEC members support oil cartels to prevent the situation from worsening by cutting production
But given the problems in producing rivals, it seems unlikely that Riyadh will retreat from its position
Obviously, when oil prices fall, Saudi Arabia will suffer as well, but its competitors will suffer even more
Many US oil companies are in dire straits as the US has cut production in recent months
This helps Saudi Arabia achieve its goal of maintaining market share while allowing competitors to set market prices
steel foundry in Saudi Arabia
The news of steel exportation of Saudi Arabia is out for many years and many steel foundry companies are working to fulfill the demand of producing million tons of products for the market
this country is one of the countries that manufacture goods for high demands like more than 500
000 tons per purchase
South Korea’s Doosan Heavy Industries & Construction announced that it had won a 1 trillion yen ($834 million) contract with Saudi Arabia’s Tuweeq Casting Company to build a casting and metal forming plant in Saudi Arabia
Doosan announced that under the contract, it plans to build Saudi Arabia’s largest metallurgical and foundry plant with an annual capacity of 60,000 tons at the King Salman International Complex near the industrial city of Jubail, KNA reported
East coast of Saudi Arabia
Construction of the facility is expected to begin this year and be completed in the first quarter of 2025
Iron making, primary and secondary steel making, casting, and hot rolling, all these steps are carried out with high precision and accuracy
In addition, other processes such as cold rolling, forging, machining, coating, and heat treatment are performed on the steel to produce the final product
The raw materials of the steel industry include: iron ore, coal, limestone, and steel scrap are the means by which steel is manufactured and delivered
There are two general methods of making steel: Stage 1: The first step in the production of steel from raw materials such as iron ore and coal
Step 2: Another method that uses processed materials, the main process of steel production in a first way is the furnace process together with the converter (BOF) BF, about 70% of the world’s steel is produced by this method
In the second steelmaking method, arc furnaces are used to melt scrap
In fact, the scrap is used as a supplement to sponge iron, and various additives, including ferroalloys, are added to achieve the desired chemical composition
About 29% of the world’s steel is produced in electric arc furnaces
Of course, the steelmaking method for electric arc furnace systems is also becoming more and more popular in some countries of the world
For example, 61% of steel production in the United States and all steel production in Saudi Arabia and Venezuela in 2010 was done using this method
There is also a technique in steelmaking called Furnace 5
This Siemens-Martin process or open furnace has a clinical energy consumption, is considered highly polluting to the environment, and has low economic benefits
This method has been widely exported and has distributed only 1% of the world’s steel production over the last decade
Energy consumption in steel production and supply Steel production is an energy-intensive, highly polluting process that also requires a large amount of natural resources
In 2010, the steel mills in most countries of the world allocated about 15% of the total industrial energy consumption
This is because this statistic is about 13% in the chemical and petrochemical industry and about 12% in the non-metal industry
All energy consumed by the industry is EJ 114 except for the oil source entering the plant
In 2005, the steel industry consumed 23
4 Mtoe 560 EJ of energy and produced 1
99 Gt of CO2 gas in exchange for the production of 1144 Mt of crude steel
Just two years later, the energy consumption in return for producing 1347 tons of crude steel has reached 616 Mtoe (EJ 8
25), and the CO2 gas production has reached 2
3 Gt
In contrast to the increase in steel production, this pollution is caused by the high energy consumption of the steel industry and its dependence on coal as the primary energy source
The global energy consumption report for the steel sector from 1972 to 2010 is shown along with the type of fuel consumed
Research shows that energy demand doubled in the 1990s
Saudi Steel Corporation (Hadid) plans to increase its current production of 5 million tons to 17 million tons by 2020
It mainly produces long products with about 5 million tons of flat products
The Saudi Hadid CEO said: “We hope that as construction activity in the region declines, industries such as car manufacturing and home appliances in the Persian Gulf will demand more steel
By the end of 2007, about 60% of iron production will be long products, of which 40% will be flat products
Consumption in the region is increasing, and the rebuilding of the oil industry in the Middle East requires more sheet products
With the development and establishment of the automotive and white goods industries, the demand for steel will increase in the future
Hadid Saudi Arabia recently built a 1 million ton tropical unit with an operating rate of 30-40%, which will double the production of flat products, in addition, the company is building a 120,000-ton color coating line
The unit is expected to be put into operation in the first three months of next year
At present, there is a lot of construction activity in the Middle East, and the demand for long products is increasing
However, there are many companies that invest in the production of e
g
long products and the lack of plate supply is also a concern for Hadid Steel
At present, the main concern is the production of structural steel products, the demand will increase in the future, and the wire installation of Hadid, which will add 500,000 tons of rebar, will soon be put into operation
After the project is completed, the total iron production capacity will reach 5 million tons
In the steelmaking or smelting sector, the Hadid Direct Recycling Unit (DRI) with a capacity of 1
76 million tons will be commissioned next year, making it the largest DRI in the world
The module will use Midrex technology to feed the melt directly into the furnace
Saudi Arabia’s Basic Industries Corporation (Sabic) intends to reduce the increase in the initial cost of its steel production unit by investing in iron ore
Steel consumption in Saudi Arabia is growing rapidly and is beyond the control of the country’s basic industrial companies
Sabic, the largest steel producer in the Arab states of the Persian Gulf, plans to increase investments in iron ore
Hadid, a subsidiary of Sabic, produces 5
5 million tons of steel annually
SABIC plans to produce steel and triple its own production by 2020
The company currently supplies its iron ore needs from Ukraine and Turkey
Of course, Sabic recently sold its stake in Mauritania’s iron ore to Qatar
