SteelOrbis talked to Abdulqader Al-Mubarak, CEO of Rajhi Steel, regarding the Saudi Arabian steel market and Rajhi Steel’s operations.
As one of the leading steel producers in Saudi Arabia, could you inform our readers about Rajhi Steel and its operations?
Rajhi steel was established in 1984 by its founder Mohammed Abdul Aziz Al-Rajhi. It is one of the Mohammed Abdul Aziz Al-Rajhi & Sons group of companies. It consists of various plants specialized in producing different types of steel products. The plants apply the latest state-of-the-art technologies and equipment to product high quality products conforming to local and international standards. The factories have a wide range of customers in the local and Gulf markets, in addition to a huge number of customers in other Arab countries.
What is your current capacity and your product portfolio?
Rajhi Steel has had to expand its production lines and diversify its products and production processes in order to respond quickly and qualitatively to the requirements of the industrial and urban sectors, reaching a production capacity of over 2 million mt of finished products.
Our product portfolio covers steel rebar, wire rod, rebar in coil, rectangular & square tubes, hot rolled steel sheets, cold rolled steel sheets, checkered sheets, galvanized steel sheets, black pipes and galvanized pipes.
Could you inform us about the current situation in the local Saudi Arabian steel market?
With successive national overall development plans based on the vision for 2030, which have included extensive development of cities as well as new industrial clusters across the Kingdom, in addition to housing projects and the rapid increase of housing loans to citizens, all this has made the steel market active with real demand.
Which industries do you mostly supply to and how do you evaluate demand in these industries?
Rajhi Steel is a reliable source which for decades has been supplying steel for construction, mainly deformed rebar in addition to other steel products.
Can you tell us about the construction and infrastructure projects in Saudi Arabia? Do you supply or plan to supply steel for these projects?
Rajhi Steel is one of the main suppliers to many iconic and mega projects all over the Kingdom, such as the expansion of the two holy mosques, the Princess Noura University, and King Khalid airport. It is currently actively supplying many government housing projects in addition to Riyadh Metro.
What are your key markets? Are you supplying to destinations beyond GCC countries as well?
Since local Saudi market demand is high due to the mentioned projects, Rajhi Steel is focusing on being part of these projects and on meeting our clients’ demand and commitments. Moreover, we have several export customers in the UAE, Kuwait and Bahrain, as well as in Lebanon, Jordan and Egypt.
Have you observed any changes in the steel trading of your company or your country after the protectionist measures introduced around the world, especially in the US and EU? Do you think that Saudi Arabia is sufficiently protecting its own steel market?
Since Rajhi Steel is mainly supplying the local market and as our target export markets are not within the US and EU, there is no impact on our trade or business.
The local Saudi market has many suppliers and producers. Rajhi Steel is one of the well-known steelmakers and has a high reputation in its local market relying on product quality, price and commitment which keeps the prices in the local market safe due to the trust from buyers in the local product, which they prefer over imports.
Do you have any new investment plans?
Rajhi Steel is currently focusing on the local market and making sure of supply to our customers.
How do you evaluate 2019 so far and what is your expectation for the rest of the year?
2019 had begun with an unplanned increase in raw material prices and that affected market supply, which has led to price increases in the local and global market.
Any final words for our readers?
This has been a great opportunity with many thanks to you for giving us the chance to introduce ourselves as one of the main steel manufacturing players in the region.