Saudi Arabian billet imports dropped to a multi-year low in 2017. Domestic crude steelmaking regained competitiveness over billet imports which surged in previous years due to low Chinese prices. However, the Saudi construction sector slowdown also took its toll on steel demand.

Saudi square billet imports plummeted -86% on-year in 2017 to only 165,143 tonnes, according to new General Authority for Statistics data monitored by Kallanish. This compares to imports in excess of 1 million tonnes in each of 2016 and 2015 when surplus Chinese billet flooded the global market. It is Saudi’s lowest billet import figure since the 806,647t recorded in 2014.

China-origin square billet imports dropped to only 24,033t in 2017 versus 621,998t a year earlier. Ukraine was the largest supplier, although its supply fell -75% on-year to 91,513t. Egypt supplied 21,998t versus 9t in 2016, while Turkish-origin imports rose over six-fold to 20,071t. Oman-origin imports plummeted -83% to 5,194t, while Bahrain supplied zero versus 77,875t in 2016.

Round billet imports, meanwhile, halved in 2017 to 10,949t, with Oman supplying 6,877t.

Saudi imports of rebar and wire rod also plummeted in 2017, by -65% to only 324,892t.

Despite the drop in billet imports, Saudi Arabia’s largest steelmaker, Saudi Iron and Steel Company (Hadeed), saw crude steel output fall -12.6% in 2017 to 4.77mt. Its direct reduced iron production declined -6% to 4.8mt. Revenue fell -4% in 2017 to SAR 8.69 billion ($2.32 billion), while net loss narrowed 7% to SAR 1.38 billion.

Saudi Arabian rebar demand continued to be hampered last year by a slowdown in the country’s construction sector resulting from lower oil prices since 2014. The Saudi construction industry is, however, expected to make a comeback in 2018 after three years of sluggish activity, with an array of new projects announced in 2017, including the $500 billion Neom masterplan.